highest move in currency

F

fare_game

During the worst news, or best news,
what is the historic highest move in pips currency has seen ?
I mean in a blink of an eye.. ( less than 2 minutes etc )..
or in any shortest time

500 pip move ?
300 pip ?
up or down

I am working on my strategy and , trying to anticipate worst case senario if I get caught short on options NAKED :(

looking for the biggest move currency has encountered in less than 2 minutes or so.


thank you et
 
Well something like 300 can occur although its usually some ridiculously drastic move (like the CHina Yuan valuation on the yen). However, you have had HUGE moves like 1992 when Soros shorted the pound. Ridiculous move. Moves of 100 pips can be expected during NFP release (you should generally not trade that anyways unless you are a fundamental trader).
 
over a day ...

I am really asking unexpected... in few minutes..

but , I need to have some time to buy the underlying to cover the short option
 
If I remember correctly back in 1986 or 87 USD/DM dropped something like 1100 pips one day (it was my second week trading in the bank). More recently was back in 1992 when the BOE stopped defending 2.77 in GBP/DM and GBP collapsed. That was an ugly one but I don't recall the exact amount of the drop.
Back in those days (late 80s early 90s) the Trade Balance was the big number and you would regularly see moves of 300 pips or so right after the number with spreads 100 pips wide.
 
Quote from fare_game:

:mad: wow...

how long did it take ? one day ? half a day ? for it to move that much ...

i guess that is once in a life time i guess
More...

I would design your system as if it was going to happen again tomorrow. Currency markets have only been around since 71, you haven't seen anything yet. Also check out the moves in the mexican peso in 95 and think about germany in the 20's and argentina in 01 (I think). When the government comes out and says it will revalue I don't think there will be anything to trade, the market will just jump to a new price level.
 
Quote from taboni:

If I remember correctly back in 1986 or 87 USD/DM dropped something like 1100 pips one day (it was my second week trading in the bank). More recently was back in 1992 when the BOE stopped defending 2.77 in GBP/DM and GBP collapsed. That was an ugly one but I don't recall the exact amount of the drop.
Back in those days (late 80s early 90s) the Trade Balance was the big number and you would regularly see moves of 300 pips or so right after the number with spreads 100 pips wide.
More...

Not sure but I think W.Buffet was deeply involved in the '87 GBP move.
The Central Bank couldn't stand the power of his billion dollar trade.

Or was it '92?
 
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