A low-risk/high reward Soros Style trade

[Martinghoul]

It IS significant if you were short around 1.2010 area. Many traders in that position were stopped out. Some brokers spiked as high as 1.2075. Today it ended back at 1.2006

There are certainly better ways of using your money.

Peter

Yeah, sorry, I meant nothing of fundamental, long-term significance where the SNB and its actions are concerned.

The advisory people? What did they so/do?

They just said that the SNB was serious and committed.

 

[Shakone]

Whatever you say about the eurchf, and where it will eventually end up, and the repercussions for intervention, it seems clear that as a trade, this is a terrible one. As wackeypete and martinghoul pointed out long ago. When/if it breaks 1.2 there will still be time to get in on the short side. Far more sensible than tying up your capital, paying carry until an unknown time, and hoping that the SNB doesn't decide to shift the rate to 1.25. I don't think long term anyone who thinks this might eventually be less thn 1.2 is wrong, I just think from a trading perspective, you're clueless.

 

[baostini]

Mate tell me when you put the swiss franc trade on and let me get in over the counter on the other side. don't fight a central bank (unless you have soros' pocket size)

 

[new_trader]

Mate tell me when you put the swiss franc trade on and let me get in over the counter on the other side. don't fight a central bank (unless you have soros' pocket size)

Nobody is talking about fighting a Central Bank on their own.

"Markets can remain "irrational" longer than you can remain solvent."

'You' includes Central Banks, good luck if you think it doesn't.

Jim Rogers - The street.com 06 Dec 2011 - YouTube

 

[baostini]

i'm still willing to take the other side of that bet for now

 

[Martinghoul]

Oh my, yesterday and today weren't very good days to be short EURCHF...

 

[rsh01]

Oh my, yesterday and today weren't very good days to be short EURCHF...

I was trying to find this thread yest. Cld have bought 8s and sold 30s quite a few times in the interim.

Wonder if the OP is averaging.