Hello Forex traders! welcome to our Forex Signal and Analysis Site! TPwithUS signals and analysis are based on Price actions, Gann Angels, and Astrology! Here we share, 10 Fun Facts about the Forex Market. Stay with us and make more profit in the forex trading Market!
10 Fun Facts about the Forex Market
1. The Evolution of Currency Exchange and Forex Trading Throughout History
Forex trading has been around since ancient times. Talmudic writings or the Biblical period mention the first currency transaction that was carried out during the old era. Money changers would help people change their currency while deducting a specific amount as their commission.
2. The Impact of Sterling on Global Forex Transactions and London’s Financial Growth in the Early 20th Century
By the year 1913, around half of the global forex transactions were carried out using the sterling (pound). This allowed the United Kingdom to change the shape of its capital, wherein the total foreign banking institutions operating within London went up from three (in 1860) to seventy-one by the year 1913.
3. The Symbolism of Bulls and Bears in Forex Trading: Understanding Market Optimism and Pessimism
In the forex market, traders are categorized as bulls or traders who are optimistic about the market and believe that it will rise, or bears, i.e. traders who are pessimistic about the market. These categories have been created by the fact that a bull strikes upwards and a bear swipes downwards.
4. The Liquidity and Dominance of the US Dollar in the Forex Market: A Global Perspective on Trading Volume and Currency Influence
The forex market is regarded as a highly liquid market globally. The market witnesses high volumes of trading, which is over 5 trillion dollars/day. Apart from this, the USD is one of the widely traded forex currencies, and it features in almost 80% of all trades.
5. The Dominance of Speculation in Forex Trading
Nearly 90 percent of forex trades are speculative.
6. The Evolution of Forex Trading: From Institutional Domain to Accessible Investment Opportunities for All
There was a time when forex trading was carried out only by banks and institutions that had a minimum of $40 million-$60 million of liquid funds. Today, people with limited funds at their disposal can also engage in forex trading.
7. Understanding Spot Trading
Immediate exchange of currencies is called spot trading since the exchange takes place “on the spot.”
8. Dispelling the Myth: The True Forex Trading Hub – London’s Prominence in the Global Financial Landscape
Most of the traders are of the impression that the US is the center of all forex trading activities. However, in reality, 41 percent of all forex transactions take place in the United Kingdom, while only 19 percent occur in the United States. Hence, it is the London Stock Exchange, which is regarded as the hub for forex trading.
9. The Decentralized Nature of Forex Markets: How the Floating Exchange Rates and Market Makers Shape Currency Values
The forex market does not have any centralized bank. The value/price of the currencies float, and the makers of the market set the rate of exchange.
10. Forex Market Resilience Amid Economic Downturns: Opportunities for Traders in Fluctuating Economic Conditions
The forex market never experienced any crisis. Economic downturns or crises offer an ideal opportunity to traders, as they can make money in both falling and rising economic conditions.
Those were some of the fascinating facts about the forex market that indicate that forex trading is indeed fun and profitable.
source: https://www.signalskyline.com/blog/2018/12/24/topic-10-fun-facts-forex-market/
