SNB have set the EUR/CHF floor peg at 1.200, so market cannot get below that, meaning as long as your stoploss is below 1.200 you cannot ever lose money! The pair had risen to 1.2400 during the dow rally, but even with Cyprus/USA budget cuts/Italian election/North Korea this pair still couldn't get below the 1.2130 yearly support! And so unless you are a fucking foolish idiot why are you not putting your entire capital behind buying this pair here at 1.2126, stoploss 1.1920 and target of 1.2326???!
Even though markets have manipulation, ceilings , floors, price controls ect..... The market seems to eventually get the final word. Not if but when. It could be a very long time (decades), it could be tomorrow. Go bet the farm and report back. It may very well work , but there is no 100% certainty. They could change their policy on some random weekend, and you'd be SOL
Buy facebook on IPO day at 28 it was a 100% right because big bank was buying there right????????????
What logical reason could they possibly have for suddenly choosing to allow their currency to become extremely strong again thus crippling their economy's exports and pushing their nation into recession?? They have delcared many many times over the last 2years that they are going to keep 1.200 peg at lowest, and will potentially consider a 1.25 or 1.30 peg if needed.
If the 1.20 was breached, for whatever reason, the skid on the 1.1920 stop would probably be quite hefty.
Please take the time and consider history: http://en.wikipedia.org/wiki/Black_Wednesday or http://www.investopedia.com/ask/answers/08/george-soros-bank-of-england.asp People with big pockets can find ways and have found ways to outwit central banks (even the Bank of England which has another dimension than SNB).
Don't see the point in putting one's entire capital buying the eurochf Might be better off buying an option, if possible, rather than the underlying pair.
You have made a fundamental fools mistake of forgetting that the BoE were having to try keeping the pound STRONGER, rather than what the SNB are doing of merely keeping it weaker. There is an extremely big difference between them in that it can become very difficult to keep your own currency strong, since the only 2 ways to do that are- Increase your interest rate OR find a magical way of burning your own currency that is already in people's bank accounts and wallets. But to keep your own currency weak all the SNB have to do is print out an extra 1trillion swiss franc paper notes and then convert them all into euros. Swiss run their own central bank and are entirely free and exclsuive of having to get other EU memebers consent like the ECB does, and so they can print however much they want whenever they want. The only risk in weakening your own currency would be if you were at risk of hyper-inflation, but Switzerland is actually currently in deflation of -0.3%!! And so they are gna want to follow Japan's target of 2% inflation, and so print out trillions of swiss franc notes.