wht will happen to a large trade that there is no one to offset it and the bank does not want to take risk by holding it
Hi Timothy.
I take you are referring to something like a Black Swan event, such as when the Swiss uncoupled the Swiss Franc (Chf) from the Euro on 15th Jan last year.
What then happened was devastating to the Euro as confidence in it evaporated and every man and his dog decided to sell the Euro against all major currencies. As no one was willing to take the other side of these “sell” trades, price plummeted within minutes until it finally reached a level where buyers came back in.
For many traders this was a disaster, brokers could not close trades and many traders lost their entire account, regardless of whether or not the had stops in place.
Some brokers went bust, taking traders accounts with them.
pls i need more replies
Hi Tim
Your question is not all that clear. Basically there will always be someone to take any trade, however the price in certain circumstances such as the one mentioned by Edd above may be drastically different from what had been market price. That’s the way markets work. I think your question is pretty much closed now.