10 Forex Market Curiosities
O Forex Market It is extremely popular around the world, mainly because it offers ample opportunities to make attractive profits. It's a market that never sleeps, ie the forex market is always trading in one or another part of the world. As one of the largest and most decentralized markets in the world, the forex market has grown exponentially over the last two years. Much of this growth and transformation has been due to the globalization of access to technology and the internet. Although many of the above facts are already known to most people, below are ten curiosities about the forex industry that you may not know about.
- Forex trading has been around since biblical times. Talmudic writings or the "Biblical Period" mentions the first monetary transaction that was performed during the ancient era. Money traders helped people exchange their currency for a specific amount (their commission).
- By the year 1913, about half of global forex transactions were conducted using the pound sterling (Pound). This allowed the UK to change the shape of its capital, where total foreign banking institutions operating in London rose from 3 (in 1860) to 71 until the year of 1913.
- In the forex market, traders are classified as bulls or bears. The first are traders who are optimistic about the market and those who believe it will rise or rise. Traders who are pessimistic about the market are called bears. These categories were created and named in this way by the fact that a bull attacks upwards and a bear attacks downwards.
- The forex market is considered a highly liquid market globally. The market involves large trading volumes, exceeding 5 trillion dollars / day. In addition, USD (US Dollar) is one of the most traded forex currencies, being involved in almost 80% of all trades.
- 90% of forex trades are speculative in nature, based on news or instincts.
- Initially forex trading was performed only by banks and institutions that had a minimum of 40 million to 60 million (USD) in liquid funds. Nowadays, people with limited funds at their disposal can also engage in forex trading, which has greatly increased the trading volume of the market. This openness is mainly due to the globalization of technologies and internet access.
7. Speaking of the internet, the majority of Forex transactions carried out today are from the Internet, not from specialized Forex buildings.
- Most traders have the idea that the US is the center of all Forex trading activities. However, 41% of all forex transactions occur in the United Kingdom, while only 19% occurs in the United States. That is why it is the London Stock Exchange which is considered the center of forex trading.
- The foreign exchange market does not have a Centralized Bank. In fact, the value / price of currencies fluctuates and market managers set the exchange rate.
- The forex market has never experienced any period of crisis. Economic downturns or economic downturns provide an ideal opportunity for traders as they can make money in both falling and rising economic conditions.
These were 10 Curiosity that you may or may not know about the Forex Market.
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