Last Thursday the Swiss National Bank decided to abandon its currency ceiling against the Euro. What was a rather low volatile relationship between the Swiss Franc and the Euro turn out to be a crazy 20% change in a single day.
The significance of this move is that, different asset classes across different segments move with different volatility. In the case of equities it can be 1 to 3% for a Singapore equities market index, and in the great financial crisis perhaps 5-8%. In some other countries such as China in the last few weeks, we seen a 7% move in a single day.
In the case of currency pairs, 20% are rather rare.
In Singapore, forex trading have become very popular as an active way for folks with skill to build wealth, so much so that there are many training institutes or classes sprouting up to teach people ......