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??
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.
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.