The Swiss franc shock and what it still teaches
Posted: Sat Oct 31, 2026 7:07 am
In January 2015, the Swiss National Bank removed its euro floor without warning. EURCHF fell around 30 percent within minutes, liquidity vanished, and several brokers went insolvent.
Retail accounts with leveraged long positions suffered losses far beyond their deposits, and stops filled at prices that had no relation to the levels set. For some brokers, the losses exceeded their capital.
The lessons apply beyond that event. Pegs and floors are not guarantees. Pairs managed by central banks carry gap risk that normal volatility measures miss. And broker solvency is a real consideration, not just a theoretical one.
For scalpers, the main lesson is position sizing and stop discipline. A trade sized as if the stop will always fill at the exact price is exposed to rare but catastrophic events.
Choosing brokers with solid regulation, segregated funds, and negative balance protection also matters more than shaving a fraction off spreads.
Does broker solvency get checked, or are spreads the main factor in choosing?
Retail accounts with leveraged long positions suffered losses far beyond their deposits, and stops filled at prices that had no relation to the levels set. For some brokers, the losses exceeded their capital.
The lessons apply beyond that event. Pegs and floors are not guarantees. Pairs managed by central banks carry gap risk that normal volatility measures miss. And broker solvency is a real consideration, not just a theoretical one.
For scalpers, the main lesson is position sizing and stop discipline. A trade sized as if the stop will always fill at the exact price is exposed to rare but catastrophic events.
Choosing brokers with solid regulation, segregated funds, and negative balance protection also matters more than shaving a fraction off spreads.
Does broker solvency get checked, or are spreads the main factor in choosing?