11 Things You Didn't Know About Forex
Posted: Thursday, October 15, 2009
by Dougal Kay
http://www.searchbyte.co.uk
The forex market is a simple concept. Foreign
currency is bought and sold and the wheels of global finance keep
turning. But in practice Forex trading is far more complicated than it
sounds and there are lots of things that are not obvious at first
glance. Below are 11 facts you probably didn't know about Forex.
1. The modern Forex market was formed in the 1970's when countries switched to floating exchange rates rather than the fixed exchange rate scheme.
2. You can trade 24 hours a day on the forex markets, except at weekends.
3. Global daily turnover is nearly $4 trillion....That is a lot of cash!
4. The forex market is the largest and most liquid market in the world.
5. The top forex trader in the world is the German bank, Deutsche Bank with a market share of 21%. The closest American is the CITI bank in 5th Position with a 7.32% share.
6. Large banks trade billions of dollars every day over the internet.
7. 85% of forex trades are of a speculative nature, the trader never actually intends to receive the currency he or she has traded, instead choosing to speculate the future position of the currency.
8. Although the US banks are not the biggest traders the US Dollar is the most widely traded currency with a whopping 86% share! The Euro is second with the South Korean Won being the least traded of the popular currencies.
9. Although people have come up with numerous theories and explanations, there is no model that can predict the future exchange rates.
10. If inflation rises in the country, the currency will lose value...The same effect will be seen even if inflation is only perceived to be rising.
11. The main driving force is market psychology. The perception of the traders worldwide drives the currency exchange rates.
Nothing is guaranteed on the forex market and it is notorious for being unpredictable and volatile. However people do make a lot of money.
And massive profits are made everyday, if they weren't people wouldn't do it. The key is training, Forex training is the way to go. Click the link to get more information about Forex.1. The modern Forex market was formed in the 1970's when countries switched to floating exchange rates rather than the fixed exchange rate scheme.
3. Global daily turnover is nearly $4 trillion....That is a lot of cash!
4. The forex market is the largest and most liquid market in the world.
5. The top forex trader in the world is the German bank, Deutsche Bank with a market share of 21%. The closest American is the CITI bank in 5th Position with a 7.32% share.
6. Large banks trade billions of dollars every day over the internet.
7. 85% of forex trades are of a speculative nature, the trader never actually intends to receive the currency he or she has traded, instead choosing to speculate the future position of the currency.
8. Although the US banks are not the biggest traders the US Dollar is the most widely traded currency with a whopping 86% share! The Euro is second with the South Korean Won being the least traded of the popular currencies.
9. Although people have come up with numerous theories and explanations, there is no model that can predict the future exchange rates.
10. If inflation rises in the country, the currency will lose value...The same effect will be seen even if inflation is only perceived to be rising.
11. The main driving force is market psychology. The perception of the traders worldwide drives the currency exchange rates.
Nothing is guaranteed on the forex market and it is notorious for being unpredictable and volatile. However people do make a lot of money.
Forex can be a great way to make a living but you need to know what you are doing. A Forex demo account can be invaluable to hone your skills.
Click the links for more information about the forex market and how to make money from it.
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