ok, so we have all seen what happended to SNB and their artificialy supported 1.20 EURCHF level 
Now, there might be another cash cows for speculators, euro pegged pairs that could be possibly milked for some cash.
Can you imagine? Loads of potential profits for your accounts, paid to you by incompetent central bankers from their countries citisens' wealth?
it can go something like this: CB tries to protect some currency exchange level and is determined to spend billions to achieve that goal. Currency is being artificialy weakened (in this case) against the euro. After the intervention speculators can enter the market at inflated price and keep buying local currency, and profit from the rates return back closer to previous level, slowly unloading during the proccess. When the exchange rate sinks too low for cnb's liking, it can intervene again and so on.
But when there is too much pressure CNB can fail to keep the level, and it gives up eventualy. Then, the level is violently breached, and speculators make tons of money.
Now, theres pretty big pressure from ECB, which seems to be determined to print euros (QE). If euro-QE realy arrives, this newly printed euros will tremendously increase pressure on central banks trying to keeping their local currencies more or less pegged to EURo.
I am aware of some such currencies: EURCZK, EURDKK, and perhaps some other EU states outside of the eurozone.
http://www.bloomberg.com/news/2013-0...-peers-1-.html
http://blogs.wsj.com/moneybeat/2013/...national-bank/
What do you think? is there some room for small speculators to exploit this? One would have to take smaller short positions during every rally or intervention, and keep sufficient free margin for higher entries on wild 50-10 % runs. and unloading/hedging some of the shorts profits when retracing, but keeping some for the case the peg is later abandoned, which may sooner or later happen (in the course of months to years)
Of course, this strategy is risky, but big sharks do it, so why should we, small traders stay aside?
Now, there might be another cash cows for speculators, euro pegged pairs that could be possibly milked for some cash.
Can you imagine? Loads of potential profits for your accounts, paid to you by incompetent central bankers from their countries citisens' wealth?
it can go something like this: CB tries to protect some currency exchange level and is determined to spend billions to achieve that goal. Currency is being artificialy weakened (in this case) against the euro. After the intervention speculators can enter the market at inflated price and keep buying local currency, and profit from the rates return back closer to previous level, slowly unloading during the proccess. When the exchange rate sinks too low for cnb's liking, it can intervene again and so on.
But when there is too much pressure CNB can fail to keep the level, and it gives up eventualy. Then, the level is violently breached, and speculators make tons of money.
Now, theres pretty big pressure from ECB, which seems to be determined to print euros (QE). If euro-QE realy arrives, this newly printed euros will tremendously increase pressure on central banks trying to keeping their local currencies more or less pegged to EURo.
I am aware of some such currencies: EURCZK, EURDKK, and perhaps some other EU states outside of the eurozone.
http://www.bloomberg.com/news/2013-0...-peers-1-.html
http://blogs.wsj.com/moneybeat/2013/...national-bank/
What do you think? is there some room for small speculators to exploit this?
One would have to take smaller short positions during every rally or intervention, and keep sufficient free margin for higher entries on wild 50-10 % runs. and unloading/hedging some of the shorts profits when retracing, but keeping some for the case the peg is later abandoned, which may sooner or later happen (in the course of months to years)Of course, this strategy is risky, but big sharks do it, so why should we, small traders stay aside?
