The GBP/CHF currency pair is one of the most popular forms of forex trading. The act of trading forex involves buying and selling different pairs of currencies with the intent of profiting from incremental (or significant) changes in one currency’s value relative to another.
GBP/CHF forex trading aims to buy the Pound and then sell it later for a profit, as it’s worth more than the Swiss Franc. Traders execute trillions of trades daily, making forex the world’s most important financial market.
Most forex trading takes place as day trading, meaning all purchases and sales occur within a single day. Understanding how day trading works with nonvolatile pairs such as GBP/CHF is important.
Factors that influence the GBP/CHF
GBP/CHF, despite its predictability, is influenced by a wide range of factors, including:
- Swiss and UK economic developments.
- Economic developments in the Eurozone.
- An important decision was made either by the Bank of England or by the Swiss National Bank (SNB).
- Gold and silver prices fluctuate around the world.
When to buy or sell GBP/CHF
The best time to trade GPB/CHF is between 8 am and 4 pm GMT. Because this is when GBP/CHF will have the most liquidity and price fluctuations, it makes sense that GBP/CHF will be the most liquid during this time.
When determining the best time to buy or sell, you should use the educational and analytical resources available.
How to trade GBP/CHF
The simplicity, predictability, and simplicity of trading GBP/CHF make it popular with retail traders and institutional investors. You can expect near-total liquidity for GBP and CHF due to their near-constant demand on the global market, which means you can buy and sell them at any time at the exact price you see.
The GBP/CHF forex pair is trouble-free to buy and sell if you have a legitimate, reputable, and trustworthy forex brokerage platform.
Profit with GBP/CHF
Making a profit on GBP/CHF trading is quite another matter. Don’t expect to make a killing overnight if you trade GBP/CHF, as it isn’t the most volatile pair. You are unlikely to see any major movements on GBP/CHF even when the GBP is highly volatile against other currencies like the Euro and US Dollar.
A day trading strategy allows you to profit from dozens of small fluctuations.
Close your position to take a profit or cut a loss
A bad price move can wipe out all your gains from small currency price movements in less than a second. Margin trading requires a solid and clear exit strategy that reduces aggregate losses.
To determine if your profits have peaked for the day, you should closely observe the market. The key is to know when to stop when you’re ahead when trading GBP/CHF.
Bottom line
With GBP/CHF, almost half of all forex trading occurs in two of the world’s most important financial centers. For both beginners and seasoned forex traders, both currencies offer a great deal.
