What if GBP or CHF disappears?

[sourcerer]

Hi,

Hmmm..wasn't sure if I should post this in the beginner forum or here, but here goes.

I know it won't happen overnight, but I wondered what would happen if the British would adapt the Euro and you'd be long GBP/USD at the moment. Same what would happen if the Swiss would adapt the Euro (after all they will join the EU) and you were long USD/CHF.

I find both scenarios interesting because on the one you are long the disappearing currency while on the other you are short the disappearing currency...seems there *must* be a difference in that.

I know people here must know as it happened before, I just wasn't there

Anyone who can shed some light on this?

Kaj

[MickMason]

I guess if you were long GBP/USD your GBP would be converted to Eur and a new long position opened on Eur/Usd, and if you were long USD/CHF your CHF would be converted to Eur and a new short Eur/Usd position opened, the balance of the larger minus smaller position would remain open.....

That's just a guess by the way

Mick

[Mr 50%]

I would guess the rate will be converted to euros and the position size adjusted accordingly so value in euros remains the same.

Now the question is what happens when the USD joins the Euro

[MickMason]

Originally posted by Mr 50%

Now the question is what happens when the USD joins the Euro

LOL

[sourcerer]

That would be tricky, avoiding all those flying pigs.

[Mr 50%]

.

[elmagd2000]

Sourcerer,
Don't worry. I got it from a VIP ( not Greenspan ) that it will be many anouncements. Plus such event will take place in week end.

Hani