Honestly idk why anyone that was familiar with FX was trading CHF when that took place. It was basically the same as taking a EUR position, except EUR had better spreads and more liquidity. It would be like trading something pegged against the dollar instead of USD itself. Why? Not only that those that new about the EUR and CHF new it wasn’t a true peg either it was a price floor set up to prevent CHF from becoming too strong, they would’ve allowed it to weaken. The fact that it stayed pegged kinda told you that CHF was fundamentally way stronger than its rates showed.
Further if you’re an options buyer the max loss is always defined, as a seller it’s a different story, unless you hedge the position, example credit spreads(which has a defined max loss also). If you’ve found a buy strategy that works or a hedged sell strategy that works I wouldn’t worry about the strategy. As for the broker I can’t specifically speak, but only imply that if you’re practicing a defined risk srategy with options I don’t see how your losses could exceed that regardless of broker.
Further if you’re an options buyer the max loss is always defined, as a seller it’s a different story, unless you hedge the position, example credit spreads(which has a defined max loss also). If you’ve found a buy strategy that works or a hedged sell strategy that works I wouldn’t worry about the strategy. As for the broker I can’t specifically speak, but only imply that if you’re practicing a defined risk srategy with options I don’t see how your losses could exceed that regardless of broker.
