Quote from MR.NBBO:
One of the very few countries with a very sound monetary policy, as far as fiat currency is concerned.
If the chaos comes raining down one day, you'll likely see a flight to a sound currency, such as the franc....if they can stay outta the EU.
yeah but Mr.N, look at it this way...
A sell position on USD/CHF extracts $7.94 every DAY out from any potential profits, in interest I have to
pay.
If I had to hold the posiiton in a drawdown for, say, 60-days, I already
lost $476.64!
(on 1 standard lot [100,000 units]).
The pair only pays $7.78 a point!
It has to move over 60 points in my favor just to break even.
And if it doesn't, I am getting whacked for almost $240 a month.
How can justify this trade?
and if I go long (selling CHF), it's already shot up over 1800-points since January.
Again, how can I justify such risk?
What is setting me off is that I know the Swiss franc is one of the most highly traded majors. I would just like to know what the big deal is about it, why it is traded so much.
