Let me go ahead and inform you about some very fun facts about forex trading. Forex trading is the trade of currencies. For example, you trade the US dollar to the GBP. This trading takes place in the forex trading market or the foreign exchange market. It is the most liquid market in the world which has transactions worth trillions of dollars, every single day. Official currencies all around the world have their own value, and they can be traded back in fourth with the help of money. Money is a currency which can be traded for other currencies. Foreign exchange trading actually dates back to ancient times, and today, it happens to be one of the largest financial markets on the planet.
I can provide you with many more fun facts about forex trading.
Let me get started.
- Did you know that more than 40% of the transactions in the entire foreign exchange market happens in the United Kingdom? We have London to thank for that.
- A lot of individuals around the world assume that it is the United States of America which is the centre of all things to do with foreign currency exchange, but they could not be more wrong. It is the United Kingdom that is the hub for forex trading. Only 19% of the transactions take place in the United States of America.
- As you would guess, the majority of transactions are done online, with the help of the internet. With the advent of advanced technologies, we have become heavily reliant on the internet and all things electrical. I would lives would not be the same, if it weren’t for these devices. The internet makes the world a much smaller place. The internet has suddenly changed everything, including foreign exchange trading and the foreign exchange market. The majority of the transactions take place on the internet, instead of the exchange floor. It is very fun to picture and exchange floor that is really busy, the reality has changed, and it has been moved over to a digital platform. Imagine a crowded floor in the middle of the coronavirus pandemic.
- Did you know that the US dollar is the most traded currency in the world? Although most of the transactions take place in the United Kingdom, it is the US dollar that is the dominant currency in forex trading. It is also one of the currencies that is included in 80% of all transactions. That means that it accounts to $5 trillion per day.
- There are more than 10 million traders, all over the globe. As you would guess, some places like Singapore, New York, London, and more have a higher concentration of traders than others. The number of traders has certainly risen over the years, and it continues to grow.