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Trading the AUDCHF with up to 500X Leverage

Are you ready to explore the exciting world of forex trading? Look no further than the AUDCHF currency pair, offering immense opportunities for profit. As a forex trader, you have the chance to engage in a dynamic market where currencies fluctuate and present lucrative trading possibilities. In this article, we’ll delve into the history and characteristics of the AUDCHF, highlighting its advantages and disadvantages. Join us on this journey as we explore why trading AUDCHF could be a smart move for aspiring forex traders.

Pros of Trading AUDCHF

  1. Market Volatility: The AUDCHF currency pair is known for its significant price movements, making it attractive to traders seeking volatility. Increased volatility creates opportunities for higher returns, especially when combined with efficient risk management strategies. Traders can capitalize on both upward and downward price swings, utilizing various trading styles such as day trading, swing trading, or long-term investing.
  2. Diversification Benefits: By including AUDCHF in your trading portfolio, you can benefit from diversification. The Australian dollar (AUD) is heavily influenced by commodity prices, particularly gold and iron ore, while the Swiss franc (CHF) is often regarded as a safe-haven currency. The correlation between these two currencies is relatively low, offering traders the chance to reduce overall portfolio risk by spreading their exposure across different asset classes.
  3. Fundamental Factors: Fundamental analysis plays a crucial role in forex trading, and the AUDCHF provides ample opportunities for traders to analyze economic indicators and news events. Australia’s strong ties to the Asian economy and Switzerland’s reputation as a financial hub contribute to the pair’s unique dynamics. By staying informed about economic releases, central bank decisions, and geopolitical developments, traders can make well-informed trading decisions.
  4. Liquidity and Tight Spreads: Liquidity is a vital aspect of any tradable instrument, and the AUDCHF offers ample liquidity in the forex market. This ensures that traders can enter and exit positions without significant slippage. Furthermore, tight spreads on the AUDCHF make it cost-effective to execute trades, allowing traders to keep transaction costs low and maximize their profit potential.
  5. Leverage Opportunities: Forex trading often involves leverage, which allows traders to control larger positions with a smaller capital investment. With up to 500X leverage, trading the AUDCHF can amplify profit potential. However, it is essential to exercise caution when utilizing leverage and ensure proper risk management to protect your trading capital.

Cons of Trading AUDCHF

  1. Increased Risk: While volatility can be advantageous, it also brings increased risk. The AUDCHF’s significant price swings can result in rapid gains or losses, requiring traders to implement effective risk management strategies. It is crucial to set appropriate stop-loss orders and adhere to them to minimize potential losses. Additionally, unexpected economic or political events can lead to sharp market movements, emphasizing the importance of staying informed and monitoring positions closely.
  2. Sensitivity to External Factors: The AUDCHF is influenced by various external factors, including global economic conditions, interest rate differentials, and geopolitical events. As a result, the currency pair can be sensitive to news releases and market sentiment changes. Traders must stay updated with relevant information and maintain a flexible trading approach to adapt to rapidly changing market conditions.

Example: Leveraged Trade with AUDCHF

Let’s consider a scenario where you decide to go long on the AUDCHF currency pair. After conducting thorough technical and fundamental analysis, you believe that the Australian dollar (AUD) will strengthen against the Swiss franc (CHF) due to positive economic data from Australia and a weakening CHF.

You open a leveraged position by purchasing AUDCHF at 0.7000 with a leverage of 1:100. This means that for every $1 of your capital, you control $100 worth of AUDCHF. Let’s assume you invest $1,000, which gives you a total trading value of $100,000.

Over the next few days, the AUD indeed strengthens against the CHF, and the exchange rate rises to 0.7200. You decide to close your position and take your profit. The 200 pips gained result in a profit of $2,000 (200 pips * $10 per pip). Considering your initial investment of $1,000, this represents a 200% return on your investment.

Example: Leveraged AUDCHF Short Trade

Now let’s explore a scenario where you anticipate a downward movement in the AUDCHF exchange rate and decide to go short on the currency pair.

After analyzing economic indicators and technical patterns, you believe that the Swiss franc (CHF) will strengthen against the Australian dollar (AUD) due to a slowdown in the Australian economy and safe-haven demand for CHF.

You open a leveraged position by selling AUDCHF at 0.7300 with a leverage of 1:100. Assuming you invest $1,000, you control a total trading value of $100,000.

As expected, the AUDCHF exchange rate starts to decline, reaching 0.7000. You decide to close your position, capturing a profit of 300 pips. This results in a profit of $3,000 (300 pips * $10 per pip). Considering your initial investment of $1,000, you have achieved a 300% return on your investment.

FAQs Related to Trading AUDCHF

  1. What factors can impact the AUDCHF exchange rate?
    • Several factors can influence the AUDCHF exchange rate, including interest rate differentials, economic indicators, political events, commodity prices (particularly gold and iron ore for AUD), and market sentiment.
  2. How can I manage the risk when trading AUDCHF?
    • Risk management is crucial in forex trading. Set appropriate stop-loss orders to limit potential losses, use proper position sizing, diversify your portfolio, and stay informed about economic news and events that may impact the currency pair.
  3. Can I trade AUDCHF with small capital?
    • Yes, you can trade AUDCHF with a small capital investment. Leverage allows you to control larger positions with a smaller amount of capital. However, it’s essential to exercise caution and understand the risks involved.
  4. What is the best time to trade AUDCHF?
    • The AUDCHF is most active during the overlapping trading sessions of the Australian and European markets. Pay attention to economic releases from both regions to capitalize on potential price movements.
  5. Are there any alternative trading strategies for AUDCHF?
    • Yes, traders can explore different strategies such as scalping, swing trading, or long-term investing. Each strategy has its own advantages and requires a unique approach based on your trading goals and risk tolerance.


Trading the AUDCHF offers an exciting opportunity to explore the world of forex trading. With its market volatility, diversification benefits, fundamental factors, liquidity, tight spreads, and leverage opportunities, the AUDCHF appeals to both experienced and novice traders. By understanding the potential advantages and disadvantages, traders can make informed decisions and trade the forex-market responsively.

Note: Trading forex involves risks, and it is advisable to seek professional advice or conduct thorough research before engaging in any trading activities.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 76 - 80% of retail investor accounts lose money when trading CFDs with these providers. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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