Trading the Swiss franc

Discussion in 'Forex' started by sKaLpZ, Jul 28, 2005.

  1. USD/CHF - US Dollar/Swiss Franc.

    I cannot find nor rationalize a single reason to trade this pair either short or long.

    Why trade the Swiss franc??
  2. MR.NBBO


    One of the very few countries with a very sound monetary policy, as far as fiat currency is concerned.

    If the chaos comes raining down one day, you'll likely see a flight to a sound currency, such as the franc....if they can stay outta the EU.
  3. yeah but Mr.N, look at it this way...

    A sell position on USD/CHF extracts $7.94 every DAY out from any potential profits, in interest I have to pay.

    If I had to hold the posiiton in a drawdown for, say, 60-days, I already lost $476.64!

    (on 1 standard lot [100,000 units]).

    The pair only pays $7.78 a point!

    It has to move over 60 points in my favor just to break even.

    And if it doesn't, I am getting whacked for almost $240 a month.

    How can justify this trade?

    and if I go long (selling CHF), it's already shot up over 1800-points since January.

    Again, how can I justify such risk?

    What is setting me off is that I know the Swiss franc is one of the most highly traded majors. I would just like to know what the big deal is about it, why it is traded so much.