Ten Fun Facts about the Forex Market

The Forex market operates twenty-four hours a day with markets open across the world. The market continues to grow in popularity as technology has made it more accessible. Today, there are millions of traders operating in the market looking to maximise the opportunities that this incredibly lucrative and exciting market.

While, the general public has become increasingly aware of the Forex market in recent years, the market has been operating for centuries.

Here are some fun facts about the Forex market.

  • Foreign exchange transactions are known to have occurred in ancient times. The Talmud records foreign currency transactions that date back to biblical times. Moneychangers operated stalls where they would exchange currency and take a commission for the service. Foreign exchange transactions are also recorded on ancient Egyptian papyri dating back to around 260 BC
  • Prior to the emergence of satellite and fibre optic communications, a large transatlantic cable connected the London and New York stock markets. For this reason, the GBP/USD currency pair is known as the cable.
  • The origin of the bears and bulls terms comes from the fact that a bear strikes its prey downwards while a bull does the opposite - striking upwards. Hence, traders who are bullish have an optimistic outlook about the market or a particular currency while traders who are bearish are pessimistic in their outlook.
  • The US dollar dominates the Forex market with it featuring in around 80% of all Forex trades. That is an amazing number when you consider that more than $5 trillion is traded in a normal trading day.
  • The vast majority of Forex trading is purely speculative in nature with 90% of Forex trading falling into that category.
  • There was a time that Forex trading could only be conducted by banks and financial institutions that held at least $40 million in liquid funds. Those days are distant memories as trading can now be conducted by individual traders with far less liquid funds.
  • Spot trading takes its name from the action - as an immediate exchange of currencies is done on the spot.
  • The term PIP is one of those commonly used but confusing Forex terms that is easily explained. In most cases, the PIP refers to the fifth decimal place of a currency price (in some cases it is the fourth decimal place)
  • Despite the US dollar dominating the Forex market, Wall Street is not the Forex capital of the world. That distinction falls to the London Stock Exchange. Perhaps surprisingly, the UK market handles just over 40% of the Forex market, while the US market handles just 19% of the overall market.
  • While the exchange floor is traditionally thought of as the trading place, today most Forex trades are done using the convenience of the internet.

These are just some of the facts about the world of Forex trading. If you would like to know more about Forex or are contemplating entering the market there is o better platform than USGFX. USGFX offer ongoing education and training as well as up to date information about the Forex market that will help you to make informed and responsible trading decisions.

Source   Presented by USG
A brief history of Forex

When you think of forex today, you likely conjure up an image of a flat-screen digital device full of real-time figures, fluctuating graphs, notifications...

How do Forex trading algorithms work?

Up until the 1970's foreign currency trading was conducted over the phone by primarily institutional investors. In what was a relatively closed market there was very...

Can I Make Forex Trading into a Fulltime Job?

Forex trading can be a rewarding and profitable profession. Like any profession it takes practice, persistence and an ongoing education program. The first thing to...

How much do you need to know to trade forex

Gaining access to forex trading platforms is relatively easy and it is possible to begin forex trading without any preparation or knowledge...

Importance of Patience in Forex Trading

There is a Chinese proverb that says, “One moment of patience can ward off great disaster. One moment of impatience can destroy a whole life...

Impact of Oil Supply on Forex Market

The modern economy is powered by oil and most economies are heavily reliant upon a regular supply of oil. Economies that need to import their supplies of oil...

The Importance of Trading Psychology

Perhaps the most important aspect of Forex trading is not mastering the technical skills but understanding and controlling the psychology of trading...

Understanding Gold Price Movements

Recent political events have seen an upsurge in gold prices and brought trading in the precious metal sharply into focus. Before jumping into the...

Trading terms every trader needs to know

Entering the trading world for the first time can be a little daunting. Even the language appears foreign. People talk about spreads, pips, bears, bulls...

Top 10 Forex Brokers 2020

200+ Forex Brokers
TOP 10 Best Forex Trading Platforms
Best Forex Platforms 2020

A variety of web terminals and specialized software makes a choice of a trading platform a difficult one for a novice trader. What should be this vital decision based on? To begin with, it is necessary to highlight the main criteria that high-quality software must meet for making money on financial markets...

Top 10 Forex Platforms 2020

All Forex Platforms