AxiTrader did same and many other brokers.
close only mode.
Lucky me I entered trades already and am sticking with my bet. Monday should be fun.
Erdogan thinks he’s a big strong man with financial support team. He better be ready for a fight.
As an indication of how bad the liquidity crunch is, the cost of borrowing the lira overnight in the offshore market surged more than 40-fold over the last three days to the highest since Turkey’s 2001 financial crisis. That’s why the lira’s gains this week aren’t offering an relief to investors with long positions; the high foreign-exchange funding rates are likely to wipe out any money they might have made in closing those trades.
Some analysts said Turkey would likely ease the situation for foreigners after this weekend’s elections. Erdogan, who was sworn in with vast executive powers last June, has been campaigning across the country for the ruling AK Party, which is facing competitive municipal races in the capital of Ankara and the commercial hub of Istanbul this weekend. That poses a threat to its quarter-century-long hold on the two cities.
“The important thing to watch is policy after elections,” said Shamaila Khan, the New York-based director of emerging-market debt at AllianceBernstein Holding LP. “The government tends to veer towards more orthodox policy when under pressure”
Investors Scramble for Liras as Turkish Swap Rates Touch 1,000%
ISTANBUL BLOG: Can Turkish markets survive until Monday?
Sold everything they had
As might be expected after the sudden turn of events, those shorting the lira sold everything they had in lira assets—equities, bonds, CDS, and so forth—to close out their positions because there was no lira left to be had in London once Erdogan’s boys had gone to work.
Lifting his binoculars, Julian Rimmer of Investec on March 27 said in an emailed note investors: “Lord knows what happens on Monday [after the elections] when suddenly the Turkish rug is pulled from underneath the lira and I suppose the issue is to determine how far the TRY will fall when a gun is not pressed to the head of fx traders. No further elections in the Turkish cycle for four years. All dictators are ever looking to buy is time. I remain bearish on the lira and the equity mkt and recommend only lira hedges, although even they aren’t faring so well because selling is indiscriminate and you can only sell what you own.”
“If they come to the market, there will be a price for them… There may come a time when the markets get completely squeezed,” Nick Eisinger of Vanguard Asset Management told Bloomberg.
“Hardly the first dumb thing”
“As usual in these situations, there is a pervasive lack of understanding by headline writers about what is happening in Turkey. The current mess hurts mainly if you have borrowed lira ST in the offshore market to fund other TRY fixed income positions & now need to roll funding,” Will Slaughter of Northwest Passage Capital Advisors complained in a series of tweets, adding: “Erdogan is crucifying the offshore TRY money markets (mainly populated by hedge funds and/or dedicated EMFX funds) to buy some short term currency stability that will certainly be unwound in a few days or weeks… It is probably stupid to destroy the offshore money market infrastructure for this purpose (given that many participants are ultimately a stable source of finance for Turkey), but this is hardly the first dumb, counterproductive thing Erdo has done in the financial sphere.”
Very sad in my opinion…
Thanks @OutsideTheBoxHK for these interesting articles !
welcome to the new week.
Erdogan has suffered big defeat in municipal elections.
Ankara has fallen.
Istanbul tettering on the brink of defeat as we speak.
gap up USDTRY… with much more to come.
once full liquidity returns and overnight Swap Rates return to normal.
Turkey: CHP (S&D) with 1762 votes lead over AKP (ECR) in Istanbul mayoral race as 99% are counted. It would be the first time that CHP wins #Istanbul. Erdogan’s AKP would lose Istanbul for the first time since the 1990s.
ended all trades profitable.
But had no idea the Swap Rate would be jacked up so hugely after I had entered my trades. Ended up paying 5x more in swap than what my profits were.
OTB’s tradingview profile
here’s the current 4H chart view… and PURPLE horizontal line is where I closed my buy trades.
More to come is seems.