Swiss frank.

The Swiss franc is the currency of Switzerland, a country that is one of the largest banking and financial centers in Europe. Until 2000, banknotes were backed by more than 40% of their face value in gold.

It is for this reason that this currency has one of the highest levels of collateral and has a stable exchange rate on par with precious metals.

These indicators have made the Swiss franc one of the most attractive options for storing capital; many investors invest money in this currency to passively store their funds in the form of deposits. Not high interest rates are compensated by the growth of the exchange rate against other currencies.

The Swiss banking system is simply a model of stability and indestructibility, which in turn affects confidence in the currency of this country. And the Swiss economy has one of the highest ratings among developed world powers.

But, despite its strength, this currency is not so widely used in gold and foreign exchange reserves, unlike the American dollar and euro, this is due to the low liquidity of this means of payment. The franc is rarely used in payments for goods and services; its main area of ​​application is the banking sector, where it often appears in calculations and is used when creating an investment portfolio.

Since 2006, there has been a clear trend toward a gradual depreciation of the Swiss franc; it confidently continues to fall in price compared to major currencies. The reason for this was the policy of the Swiss leadership, which is concerned about the excessive strengthening of this monetary unit, which makes Swiss goods less competitive in world markets.

It should be noted that at the beginning of 2012, this currency strengthened, the reason for this was the global financial crisis; perhaps the rate increase will continue until the first positive messages about changes in the economies of Europe and the United States.

Trading the Swiss franc on the Forex exchange.

As mentioned earlier, this currency is an alternative means of preserving capital from inflation, which is why its rate has a clear correlation with such world currencies as the American dollar, euro and Japanese yen.

When a banking, political or financial crisis worsens, when these currencies become cheaper, the Swiss franc rate confidently begins to rise, thereby confirming its reputation as a haven for capital.

That is why the main strategy used when trading this instrument on Forex is the correlation of currency pairs .

The most popular currency pairs are EUR/CHF, USD/CHF, CHF/JPY and GBPCHF; they can be used both in regular trading and in the game on interest rates.

Turnovers in Swiss francs on Forex account for about 5% of the bulk of transactions; the greatest activity is observed during the functioning of European trading platforms, sometimes market volatility per session reaches more than 150 points.

Pairs that include this currency are highly profitable and have good predictability.