There are approximately 4,500 stocks listed on the New York Stock exchange. Another 3,500 are listed on the NASDAQ. Which one will you trade? Got the software? Got the time? In Spot currency trading, you have 4 major markets, 24 hours a day 5.5 days a week. Concentrate on the majors; find your trade.

  The stock markets are comprised up of a number of centralized exchanges. One of the problems with any centralized exchange is the involvement of middlemen. Any party located in between the trader and the buyer or seller of the security or instrument traded presents additional costs. The cost can be either in time or in fees. Spot currency trading does away with the middlemen and allows clients to interact directly with the market maker. Forex traders get quicker access and cheaper transaction costs.
As a basic example, consider an interest rate decision by a country’s central bank. If a rate is hiked, it is expected that capital flows into that country may increase, as investors may seek to realize a greater return on their investment in that country vis-à-vis others. As more capital flows into the country, the demand for its currency increases - which generally causes an appreciation of that currency.

  The Swiss National Bank (SNB) is the monetary policy authority of Switzerland. All decisions are based on a consensus vote. The Board reviews monetary policy at least once a quarter, but decisions on monetary policy can be made and announced at any point in time. Unlike most other central banks, the SNB does not set one official interest rate target, but instead sets a target range for their three month Swiss Libor rate. The Swiss Libor rate is set based upon the need for maintaining an inflation target of less than 2% inflation per year.

  The SNB also closely monitors exchange rates, as excessive strength in the Swiss franc can cause inflationary conditions. This is especially true in environments of global risk aversion, as capital flows into Switzerland increases significantly during those times. As a result, the SNB typically favors a weak franc, and is not hesitant to use intervention as liquidity tool. SNB officials intervene in the franc using a variety of methods including verbal remarks on liquidity, money supply and the currency.
The EUR/CHF is the most commonly traded currency for traders who want to participate in CHF movements. The USD/CHF has higher illiquidity and volatility. However, day traders may tend to favor USD/CHF over EUR/CHF because of its volatile movements. In actuality, the USD/CHF is only a synthetic currency derived from EUR/USD and EUR/CHF. Market makers or professional traders tend to use those pairs as leading indicators for trading USD/CHF or to price the current USD/CHF level when the currency pair is illiquid. Theoretically, the USD/CHF rate should be exactly equal to EUR/CHF divided by EUR/USD