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How To Bet Against The Swiss Currency Fixing Attempt

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Invest equal amounts in SEUR (short EUR long $) and LCHF (long CHF and short $)

If the EUR plummets and takes CHF with it the short+long will cancel each other (to a point) however if the CHF peg becomes unsustainable you cash in big time :-). Of course you would lose out if EUR outperforms CHF (ehem) or if the $ tanks relative to the pound.

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Pegs fail when they are too high. The swiss are pegging it lower than the meerkat thinks its worth.

That they can sustain forever..but it could have unintended consequences like a little higher inflation.

Ofcourse if other nations follow it means higher inflation globally as they each print to buy each others currencies

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Invest equal amounts in SEUR (short EUR long $) and LCHF (long CHF and short $)

If the EUR plummets and takes CHF with it the short+long will cancel each other (to a point) however if the CHF peg becomes unsustainable you cash in big time :-). Of course you would lose out if EUR outperforms CHF (ehem) or if the $ tanks relative to the pound.

Hold on a sec... I sell euros to buy dollars and with these dollars I buy swiss francs. So you're saying buy swiss francs with euros aren't you? In effect you are suggesting we bet against the peg?

<Edit to add: IIUC the £ or $ moves would have no impact on this?>

Edited by _w_

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Hold on a sec... I sell euros to buy dollars and with these dollars I buy swiss francs. So you're saying buy swiss francs with euros aren't you? In effect you are suggesting we bet against the peg?

<Edit to add: IIUC the £ or $ moves would have no impact on this?>

The suggestion is to dabble with being an amateur hedge fund. A Soros-wannabe.

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The suggestion is to dabble with being an amateur hedge fund. A Soros-wannabe.

Is being a Soros wannabe something bad?

Or should we be content to keep struggling to make ends meet while our government is p*ssing on us?

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Invest equal amounts in SEUR (short EUR long $) and LCHF (long CHF and short $)

If the EUR plummets and takes CHF with it the short+long will cancel each other (to a point) however if the CHF peg becomes unsustainable you cash in big time :-). Of course you would lose out if EUR outperforms CHF (ehem) or if the $ tanks relative to the pound.

Could somebody in laymans terms explain what this means : imagine I was a complete idiot who didn't have a clue about these things :)

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CHF is not pegged, it is a ceiling. Floors are difficult to maintain because you need foreign currency reserves to buy up your currency if it falls too far. By contrast ceilings are easy to maintain because no matter how much the markets buy your currency, you have an infinite supply to sell them.

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Invest equal amounts in SEUR (short EUR long $) and LCHF (long CHF and short $)

So long CHF and short EUR to cut the story, erm, short?

That is about as wise as going long GBP in the hypothetical scenario where the BoE inflation target has been abolished and the government declared that all its spending will henceforth be financed by printing money. Basically, the Swiss say they will do an arbitrary amount of damage to their currency that can be reasonably be expected to be slightly more severe than whatever happens to the Euro. Just why would you doubt they can do that?

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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