Well, CHF is Swiss Franc, a traditional currency. CHF is accepted across Europe, but it isn’t widely used in the United States, where they use the dollar. CHF is similar to the dollar, as the exchange rate is sometimes paired with a pound, depending on the country, in which case, the currency is known as CHF/HUF.
HUF is Hungarian Forint, which is pegged to the Euro. However, Hungary’s currency is regulated. Unlike Switzerland, Hungary is not allowed to manipulate the currency’s exchange rate. They only let their currency, known as the FOREX, be traded by their own citizens.
Hungary and Switzerland are very different, but they are both trading currencies. They are swapping currencies, in this case, their currencies are trading their currencies to their currencies, in Switzerland’s case, CHF is trading to HUF.
So it’s very similar to a currency pair trading, when a currency trades against another currency. As long as a currency is trading at the same value, the two countries are trading with one another.
The Hungarian Forint has been pegged to the Euro since 1998. And the Swiss Franc has been pegged to the Euro since 1999. So, as long as Switzerland is trading their currency against other currencies like the Euro, there will always be an exact relationship between the two, which means traders have nothing to worry about.
Trading HUF/CHF
As long as both countries are trading their currency, it’s usually very easy to buy the currency and trade it against the currency of the country of your choice. To trade HUF/CHF, you have two options. The first option is to buy the currency of Hungary and the second option is to buy the currency of Switzerland. If you’re trading the Swiss Franc, it’s important to use a trading platform that also trades HUF. Because the Swiss Franc has two different pairs, HUF/SEK, HUF/SEK, and HUF/SEK, there is a lot of risk when trading HUF/CHF.