patrick.net

Now since the Swiss are so secretive-I wonder if the central bank decision was communicated to some trader/hedge fund before that? That guy would have made a killing going short. If some one did it froma Russian account, nobody could even trace them.

lostand confused says

Now since the Swiss are so secretive-I wonder if the central bank decision was communicated to some trader/hedge fund before that? That guy would have made a killing going short.

Good for him.

Goldman Sachs Recommended 2015 Trade:

#6 – Sell the Swiss franc against the Swedish krona

A monetary policy divergence play.
http://blogs.wsj.com/moneybeat/2014/11/20/here-are-goldman-sachss-top-trades-for-2015/

Only a fool would take advice from a large player in a zero-sum game.

Peter P says

Only a fool would take advice from a large player in a zero-sum game.

Bingo a fool or a "muppet"

But muppets are so cute. :-)

Swiss Franc vs gold

Euro vs gold

Several currency trading firms across the world have gone belly up due to the Swiss bank move. Looks like there were stops slippage, due to the ferocity of the move and many accounts ended up with negative balances-interesting times.

Multiple of billions were lost yesterday... It will take time to digest and see the real cause and effect over time. CHF is still in the bottom range of yesterdays move, lots of head scratching going on.

This will have to be looked at collective over time to acquire a reasonable concept of cost benefit which the lines are being drawn from both sides..

FXCM will be interesting (halted). Could be 0.

mell says

FXCM will be interesting (halted). Could be 0.

Very interesting.

Numerous FX Brokers Shutter After Suffering "Significant Losses" Following SNB Stunner

http://www.zerohedge.com/news/2015-01-15/2-fx-brokers-suffer-significant-losses-after-snb-surprise-breach-regulatory-capital-

lostand confused says

Several currency trading firms across the world have gone belly up due to the Swiss bank move. Looks like there were stops slippage, due to the ferocity of the move and many accounts ended up with negative balances-interesting times.

Can they be negative? Many retail FX accounts are not setup as proper margin accounts. Not sure if they can go debit. At least, they may not be able to collect.

Brokers in the US are better regulated. Outside of this country, many are just modern day bucket shops.

lostand confused says

Looks like there were stops slippage, due to the ferocity of the move and many accounts ended up with negative balances-interesting times

Brokers also jump the tracks with hedging various currencies to be able to chase traders stops using trader money basically margining themselves with trader money.

This should give pause to the banking institutions who do the same thing with depositor funds. Lots of brokers claim to be ECN and no dealing desk but that is simply not true.

Not to mention they also setup subsidiaries less regulated brokers in other countries.

It's a rough neighborhood my friends....

Graybox says

mell says

FXCM will be interesting (halted). Could be 0.

Very interesting.

Numerous FX Brokers Shutter After Suffering "Significant Losses" Following SNB Stunner

http://www.zerohedge.com/news/2015-01-15/2-fx-brokers-suffer-significant-losses-after-snb-surprise-breach-regulatory-capital-

From the article, if seems most retail traders are caught short. This is so exciting. :-)

Idea: perhaps currency trading is an exercise of comparative religion? :-)

Peter P says

Idea: perhaps currency trading is an exercise of comparative religion? :-)

And can be applied to all markets big and small....

Graybox says

Peter P says

Idea: perhaps currency trading is an exercise of comparative religion? :-)

And can be applied to all markets big and small....

Yep, trading is really an analysis of beliefs.

Peter P says

Brokers in the US are better regulated. Outside of this country, many are just modern day bucket shops.

MF Global?!!!

smaulgld says

Peter P says

Brokers in the US are better regulated. Outside of this country, many are just modern day bucket shops.

MF Global?!!!

LOL, sometimes even regulations can help you so much.

http://www.bloomberg.com/news/2015-01-16/fxcm-said-to-be-in-talks-with-jefferies-for-200-million-rescue.html

I don't know about buying gold at 1275 however it's a great spot to test short positions with a stop just above 1285.... lol While your at it get into some short OIL, CAD, CHF, AUD, and JPY products.

That way your all in.... The perfect low risk contrarian trades.
One more thing don't forget to sell when your in profit.

Blurtman says

Yes, but the change (gains) will be currency dependent and vary by currency.

That I correct- now you understand gold! Gold doesn't rise or fall it is stable and currencies react to it.
Gold doesn't perform it endures

Graybox says

I don't know about buying gold at 1275 however it's a great spot to test short positions with a stop just above 1285.... lol While your at it get into some short OIL, CAD, CHF, AUD, and JPY products.

You may be right if you are trading paper gold contracts.
Really there are far better ways to make money than trading gold paper.

Gold should be held in physical form in an insured allocated vaulted account as insurance , not for speculation

smaulgld says

You may be right if you are trading paper gold contracts.

Really there are far better ways to make money than trading gold paper.

Money is money, that's why I added;

short OIL, CAD, CHF, AUD, and JPY products.

Your all right smaulgld, you remind me of Hank Hill and his selling of propane and propane accessories... Charcoal just can't match up with propane.

I no longer consider gold sacred. It is a value store only because people believe in it, and they do so mostly because the supply is limited. In this regard, it is not better than cryptocurrencies.

Peter P says

I no longer consider gold sacred. It is a value store only because people believe in it, and they do so mostly because the supply is limited. In this regard, it is not better than cryptocurrencies.

Lets just hope that hedge is never "needed" in the form or degree it's portrayed.

BTW
BITUSD at $120+/- and LTCUSD at whatever it is if/when BITUSD gets to that level will be a great speculation trade.

smaulgld says

Blurtman says

Yes, but the change (gains) will be currency dependent and vary by currency.

That I correct- now you understand gold! Gold doesn't rise or fall it is stable and currencies react to it.

Gold doesn't perform it endures

You can say the same about escort rates. Rin?

Peter P says

I no longer consider gold sacred. It is a value store only because people believe in it, and they do so mostly because the supply is limited. In this regard, it is not better than cryptocurrencies.

Or Malomars. Just try to buy them on the west coast. The only thing gold has going for it is history. That is what backs gold.

Blurtman says

The only thing gold has going for it is history. That is what backs gold.

Silver has a similarly long history. Yet the price actions are very different.

Peter P says

Blurtman says

The only thing gold has going for it is history. That is what backs gold.

Silver has a similarly long history. Yet the price actions are very different.

Re gold-its history is its history BECAUSE people always want it not because people always have wanted it

https://smaulgld.com/silver-supply-demand/

Silver is different than gold in that it has industrial uses (electronics, solar, batteries mirror), so its valued like oil or any other commodity. Silver also has a monetary and jewelry/adornment use.
https://smaulgld.com/gold-supply-and-demand/

Crytpos have only a use as a medium of exchange like checks and have no value otherwise

Blurtman says

The only thing gold has going for it is history. That is what backs gold.

Learn more about gold!:

The Most Useful Metal

Of all the minerals mined from the Earth, none is more useful than gold.

http://geology.com/minerals/gold/uses-of-gold.shtml

Value is what people give things.

Silver moves differently mostly because the traders are a different set of people.

Graybox says

Your all right smaulgld, you remind me of Hank Hill and his selling of propane and propane accessories... Charcoal just can't match up with propane.

My point is most trading vehicles are superior to gold but as hard assets go, perhaps few better

Most of gold demand is NON investment 70% jewelry and more than half of silver is non investment (industrial)

So it really doesn't make sense to judge them on the same basis as currencies,(crypto or other wise) or stocks and bonds

You can see from these demand charts that most of the demand of silver and gold is for non investment.
The investment value is in the mind the rest is in real world demand.

Peter P says

Value is what people give things.

Silver moves differently mostly because the traders are a different set of people.

Much of the demand for silver is based on need- not perception

smaulgld says

Peter P says

Value is what people give things.

Silver moves differently mostly because the traders are a different set of people.

Much of the demand for silver is based on need- not perception

Let's agree to disagree.

Need is a perception.

Peter P says

smaulgld says

Peter P says

Value is what people give things.

Silver moves differently mostly because the traders are a different set of people.

Much of the demand for silver is based on need- not perception

Let's agree to disagree.

Need is a perception.

Not really you NEED to heat your home so you need oil.
You need electronic devices so you need silver.

Silver an oil are essential needed commodities, gold not so much.
Crypto currencies not at all