Trading USD/CHF.

USD/CHF is traded in the amounts denominated in USD.

Standard lot sizes are $100,000 while mini lot sizes are $10,000.

The pip value, which is denominated in CHF, is calculated by dividing 1 pip (0.0001) by USD/CHF’s rate.

Profit and loss are denominated in Swiss francs.

For one standard lot position size, each pip fluctuation is valued at 10 CHF.

For one mini lot position size, each pip fluctuation is worth 1 CHF.

To illustrate, if the prevailing market rate of USD/CHF is 1.0600 and you want to trade one standard lot, then one pip would be equivalent to 9.4340 USD.

Margin calculations are typically in USD. At 100:1 leverage, you need $1,000 to control 100,000 units of USD/CHF.

USD/CHF Trading Tactics

The Swissy pairs (USD/CHF and EUR/CHF) are usually active during the European trading session only.

Both currency pairs tend to be range-bound most of the time. Given this, they are most susceptible to sudden spikes and breakouts.

As we mentioned earlier, the SNB is very much keen on monitoring the valuation of the Swissy.

It is notoriously known to intervene in the forex market to weaken the CHF especially when it reaches some historical key levels.

For example, if USD/CHF falls back to its yearly low due to an increase in risk appetite, the SNB could just be lurking around to push the pair back higher.

You could also trade the Swissy by monitoring the economic fundamentals of its major trading partner, the eurozone.

Any economic or political tension in the eurozone could lead investors back to the safety of the Swissy.

Given this, currency crosses like EUR/CHF could also be used to trade, for example, the USD/CHF. A rate hike by the ECB which boosts EUR/CHF could also spill over on USD/CHF.

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