The Swiss franc shock that rocked the market! [Forex Demon]
On January 15, 2015, the Swiss National Bank announced that it would abolish the upper limit of 1 euro = 1.20 Swiss francs that had been in place against the euro. This sudden announcement caused the Swiss franc to surge, and global financial markets became highly unsettled. In currency pairs involving the Swiss franc, movements of more than 1000 pips occurred in a short period, and the exchange market briefly went into a panic.
It seems that catastrophic losses occurred in many forex accounts, and even I myself incurred the largest loss in recent memory. Among domestic forex brokers, there were places where customers’ unpaid balances reached hundreds of millions of yen, meaning that investors’ losses exceeded the margins they had deposited with the forex companies.
In addition, some of the world’s leading financial institutions suffered losses in the hundreds of millions of yen, and hedge funds failed, turning into a terrifying situation overnight. In this article, I will share my views on the impact of the Swiss franc shock.
Table of Contents
1. How did the exchange rates move when the Swiss franc shock occurred
2. People who suffered losses from the Swiss franc shock
3. Why did the Swiss franc shock happen
4. Be prepared for anything that can happen in the forex market
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※This article is a revised edition of FX攻略.com’s April 2015 issue article
