Sizing franc exposure around Zurich policy meetings
Posted: Mon Nov 02, 2026 3:50 pm
Zurich's central bank has caught markets off guard before, the clearest example being the removal of the EURCHF floor in January 2015, when the franc moved more than many brokers could handle. That episode remains a reminder that some central banks act without signalling.
For traders who hold franc positions around SNB meetings, the main lesson is sizing. If a move of several percent in minutes is plausible, even if unlikely, a normal stop-based risk calculation understates the danger. Liquidity can disappear, and stops can fill far away.
A practical approach is to hold no CHF exposure over SNB decisions, or to hold only positions small enough that a large gap would be survivable. Guaranteed stops, where offered, cost a premium but cap the damage.
It is worth checking how a broker handled 2015 if they were operating then, since negative balance policies vary. Some traders simply avoid the franc around meetings entirely.
What is your approach to CHF on decision days?
For traders who hold franc positions around SNB meetings, the main lesson is sizing. If a move of several percent in minutes is plausible, even if unlikely, a normal stop-based risk calculation understates the danger. Liquidity can disappear, and stops can fill far away.
A practical approach is to hold no CHF exposure over SNB decisions, or to hold only positions small enough that a large gap would be survivable. Guaranteed stops, where offered, cost a premium but cap the damage.
It is worth checking how a broker handled 2015 if they were operating then, since negative balance policies vary. Some traders simply avoid the franc around meetings entirely.
What is your approach to CHF on decision days?