CHF pairs are fully tradable!

Foreign exchange trade experienced severe volatility due to the shocking moves announced by the SNB (Swiss National Bank). Many of the forex traders and foreign exchange brokers had to suffer severe losses and some of them entered insolvency. Among this chaotic situation in the foreign exchange market, CommexFX has upheld its promises to its clients and safeguarded them from the extreme volatility caused by SNB announcements. It was the result of CommexFX’s successful risk management that it remained fully protected from the market volatility. All the CHF pairs are completely tradable for its clients. Moreover, it has increased its margin requirements for CHF pairs up to 2.5% with immediate effect.

This type of shocks has been observed in the past as well. It was around lunch time two days ago when the SNB engaged all the macro hedge funds in the market and crushed them. The majority of these macro hedge funds was short the CHF or the Swiss Franc. The extreme volatility was the result of two decisions by SNB. First, it furthered its negative interest rate policy and reduced the interest rate from – 0.25% to – 0.75%. It was an unprecedented move on the part of a central bank. Second, it removed the 1.20 EUR/CHF floor that was enforced in September 2011 when gold reached its so-called high.

The investors in CHF pairs, especially EUR/CHF pair, saw its price at 1.1999 and in moments the EUR/CHF pair was at less than 0.75, a true shock for the investors. However, it finally rebounded and closed at just above 1.00. It is the same level where it traded just before the enforcement of currency floor by SNB in 2011. Keeping in view the market events, it is significant achievement for a forex trader holding EUR/CHF pair to avoid the impacts of these events. The impacts were so grave that many FX brokers shutter due to significant losses.

Most of the brokers stopped trading in CHF pairs due to the fear of aftershocks of the stunning decisions made by SNB. However, if you are a client of CommexFX and hold CHF pair you need not worry. Take a sigh of relief as the company’s successful risk management policy has saved it from the shocks of severe jolts during last 36 hours. When most of the FX companies shuttered or stopped trading in CHF pairs, CommexFX has announced to its clients that CHF pairs are fully tradable. Remember, not many FX companies have managed to save their clients from the loss after the stunning decision of removing the cap from CHF against EUR.

There have been reports of insolvency and bailouts for the FX companies due to lack of liquidity and exceptional volatility. It is comforting to find a place where you can still trade the CHF pairs. As a forex trader, one can and should learn some lessons. Choosing a company with efficient risk management can save you from severe financial losses due to unforeseen events such as occurred during last 36 hours.