That was the most basic and dumbed down version I could find thus I thought it could help you.. what's a selling intervention?
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EUR/CHF Floor
- Thread starter chicagodon
- Start date
That was the most basic and dumbed down version I could find thus I thought it could help you.. what's a selling intervention?
This entire thread has been me pointing out the fact that I was suprised the proximity to the floor is so close. I never stated to be long or short as there could be 100 pips of risk on either side. If they break the floor you could be in a 100 pip winner right away but if they intervene could might not be able to get out and be out of the money by 100 pips.
To take a long ahead of the floor you have to be confident that will support the floor. To be short into it is betting that you can actually cover and they will not intervene. All I was saying is the floor is getting close and with the gold referendum voting it could make it more interesting. If they had to buy more gold then they might not be able to support the floor.. but now it's probably a nonevent since it has failed to pass.
To take a long ahead of the floor you have to be confident that will support the floor. To be short into it is betting that you can actually cover and they will not intervene. All I was saying is the floor is getting close and with the gold referendum voting it could make it more interesting. If they had to buy more gold then they might not be able to support the floor.. but now it's probably a nonevent since it has failed to pass.
what's a selling intervention?
If they intervened and the price went down, I would call that a selling intervention. If they are selling, then they don't think much of your floor.
If they intervened and the price went down, I would call that a selling intervention. If they are selling, then they don't think much of your floor.
Because that would make sense for then to do....
Because that would make sense for then to do....
Yes, it makes a great deal of sense to them. Otherwise they wouldn't be doing it.
At the time of the peg, Euro was strong. Now Euro is weak and the peg no longer makes sense because Euro will drag CHF under the water with it.
If I were SNB chairman, I would set the new floor at 1.00 and all those people short will be in for 2000 pip profit.
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Yes, it makes a great deal of sense to them. Otherwise they wouldn't be doing it.
At the time of the peg, Euro was strong. Now Euro is weak and the peg no longer makes sense because Euro will drag CHF under the water with it.
If I were SNB chairman, I would set the new floor at 1.00 and all those people short will be in for 2000 pip profit.
Luckily for us you are just some joe blow that has a hard time comprending basic economic situations and the biggest decision you ever have to make is to use your right or left hand.
Well, SNB or someone is selling it into the floor. If the claim of intervention is proven, then that points at SNB as the seller because the price is going down.
not surprised at all it keeps testing the floor there is a ton of liquidity there. A lot of retail is getting on board and I would expect balls to be squeezed hard before any rip. Those trading it should ask themselves do they really have an edge?
not surprised at all it keeps testing the floor there is a ton of liquidity there. A lot of retail is getting on board and I would expect balls to be squeezed hard before any rip. Those trading it should ask themselves do they really have an edge?
How do you tell there's liquidity ? My data tells me the liquidity had been sucked dry higher up. We are currently in a mark down phase, at the end of which all the noobie longs are going to lose their shirts.
How do you tell there's liquidity ? My data tells me the liquidity had been sucked dry higher up. We are currently in a mark down phase, at the end of which all the noobie longs are going to lose their shirts.
a lot of street money is getting long around the floor price. you also have to consider that someone may defend the floor. is that enough liquidity for you? Price will often drift into these liquidity pools due to the market micro structure. In my opinion buying the floor is an out and out punt and time would be better spent researching a solid edge. just my 2c.
Where is the floor at now ?