The SNB move stopped us out on long USD/CHF and short CHF/DKK
Market normality ceased and our stop-losses were not tradable
SNB shock markets
Yesterday, the SNB scrapped its long-standing 1.20 floor on EUR/CHF and simultaneously cut rates to curb CHF strength (see FX Strategy – SNB exit unlocks CHF and Scandi potential against EUR, 15 January 2015, for more details).
Following the SNB's surprise move, normality ceased in CHF markets and our stop-losses on the two CHF trades were merely theoretical but not tradable. Thus, we close our USD/CHF and CHF/DKK trades at 0.8630 and 7.3610, respectively, and as a result, we incur a 10.25% loss on our long USD/CHF and 19.22% loss on our short CHF/DKK.
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