The legends, while not entirely correct, do have a basis in truth. There’s a reason why you keep seeing Swiss banks in all of those movies and TV shows being used to hide funds, but it’s really much simpler and makes more financial sense than wanting to hide your latest and greatest bank heist, give us a moment and we’ll explain why this pairing makes perfect sense for your next binary option trade.
The first thing to consider when trading the USD-CHF binary options pairing is that Switzerland has in fact has NOT taken part in making the Euro it’s official currency, nor has it joined the European Union itself, all in a bid to maintain its political and financial neutrality, this fact has a great impact on the CHF and Swiss economy.
Secondly, we’ll go back to those myths about the Swiss banking, as a great deal of them do have a basis in reality, the Swiss do maintain a banking system which is highly secretive (despite recent easements in regulations) and highly regulated, which has resulted in Switzerland becoming a hub for banking, investments and insurance for the entire world (not just bank robbers or terrorists), this fact in turn has resulted in the Swiss economy maintaining a level of income and trade which very few single nations can achieve.
While the Swiss Franc is less liquid than the British pound or the Euro, it is still considered to be a relatively easy currency to trade, as it has been historically easy to predict – the way the Swiss banking system is built often results in investors seeking its safe havens when other markets become more volatile.
In essence, the CHF is very likely to see its price level increase in times of global economic or political crisis, in complete opposition to other global currencies, that is quite simply due to the fact that at those times, investors view the CHF as a safe investment, especially when compared to other currencies like the Euro or USD, The US and Europe have a tendency to be involved in various global conflicts (Iraq and Afghanistan in the previous decade come to mind) which can result in their respective economies suffering the burden, a burden which the Swiss do not have a part of, resulting in their currency increasing its strength when other currencies depreciate their value.
However, when trading the USD-CHF binary option pairing you should always keep in mind that in times of relative global calm the CHF tends to immolate the trends of the Euro, due to the close financial contacts the Swiss enjoy with nations in the Eurozone, so unless the market is in turmoil, or expecting it, you should keep a close eye on the Euro trends, despite trading in CHF.
Assuming you have gained a little familiarity with the CHF, you can now see how pairing it with the USD can be a way to increase your success in trading binary options, whereas the USD usually responds poorly to any signs of economic or political distress, the CHF stands to be one of the only currencies gaining from the Dollar’s poor reaction, so in essence, all you need is a time of perceived weakness on either side of the pairing and you can make a handsome profit.
And if you make good use of our advice, you could easily find yourself having a need of one of those fancy and highly secretive Swiss bank accounts for all you extra cash.