Every day, you are bound to read about complex forex information.
Instead of the boring old stuff, we will mention the top 10 fun facts about forex trading.
1. Forex extends back to ancient times
There is a notion that the first sign of forex erupted during biblical times.
The Egyptian currency market dates back to the 4th century.
On to more recent times, forex began 500 years ago in the Netherlands because merchants demanded free trade.
By 1875 a standard Gold System was established, which ended in 1944 by introducing the Bretton Woods system.
Innovative free-floating exchange rates inaugurated the modern forex market in 1972.
And the rest is history (literally).
2. Forex sees a massive amount daily
Crazily enough, the forex market deals with transactions with a value of $6 trillion every day! That’s 12 zeros times 6!
Indeed, it’s a tremendous amount. Forex is, hence, rightfully known as the largest market on earth.
3. USD makes the market move
The forex market trades in currency pairs: majors, minors, and exotics.
Majors (e.g., EUR/USD and AUD/USD) employ the most activity.
Most of these have USD in them.
USD contributes 80% of trade in the forex market.
61% of all foreign bank reserves are in USD.
40% of the world’s debt is in USD.
These are just some facts that delineate how USD makes the market move.
4. GBP/USD’s nickname is Cable
I know, funny name. But it’s true.
The Cable is one of the most traded currency pairs in the forex market.
The nickname dates back to the 19th century.
5. EUR/USD is called the Fiber
EUR/USD slang name is a better variant of GBP/USD.
“Cable” replaced “fiber” because fiber lines were starting to replace cables in the late 1990s.
6. The UK is the center of the forex market
London has always been a global trading hub.
US accounts for 19% of forex trading, while the UK accounts for 41%.
7. There aren’t many wild swings in forex
You may have seen your positions go up and down. But, the market itself makes wild swings seldom often.
Central banks intervene whenever there is a need to stabilize currency rates.
8. Forex will never see a night
You might argue that contemporary currencies will soon be a thing of the past, but this is unlikely.
Currencies represent countries’ cultures and identities. Even in a digital world, not every single currency can go digital.
9. Forex trading used to require millions
If you were born in the 1970s, you would need millions to start a forex account.
Today, you just need a dollar!
Grab a device and an internet connection, and let the trading begin!
10. Women are better traders than men
According to a Warwick Business School study, women are better forex traders than men. This difference is about 1.8%.
Bottom line
There you have it; fun facts about the forex market. I am sure these made you fall in love with forex all over again.
