Forex Facts for Trading

A recent research study undertaken by Ph.D. researcher John Forman, reveals that 99.6% of retail Forex traders are unable to achieve more than 4 back-to-back profitable quarters. Sound strategy or not, losses are apparently inevitable.

The USD is the most popular currency; it’s involved in 87% of all trades.

The top ten traded currencies are: from highest to lowest percentage (As two currencies are involved in each transaction, the sum of shares in individual currencies will total 200%.)

1) U.S. Dollar with over 87% of the total volume
2) Euro (EUR 33.4%),
3) Japanese yen (JPY, 23%),
4) British Pound (GBP, 11.8%)
5) Australian Dollar (AUD 8.6 %),
6) Swiss Franc (CHF, 5.2%).
7) Canadian Dollar (CAD 4.6%),
8) Mexican Peso (MXN 2.5%),
9) Chinese Renminbi (CNY 2.2%)
10) New Zealand Dollar (NZD 1.4%)

The most widely traded currency pairs, from both the Majors and the Minors, are:

USD/EUR (24.1%)
USD/JPY (18.3%)
USD/GBP (8.8%)
USD/AUD (6.8%)
USD/CAD (3.7%)
USD/CHF (3.4%)
USD/MXN (2.4%)
USD/CNY (2.1%)
USD/NZD (1.5%)
USD/RUB (1.5%)

The 5 most popular cross rates, according to research are: EUR/JPY, EUR/GBP, EUR/CHF, GBP/JPY and GBP/CHF.

Forex is the most liquid market in the world.

With the introduction of Metatrader in the early 00’s, retail forex evolved once more, providing the ability for traders to write their own Expert Advisers and signals in an open platform.

There’s no crisis in the Forex markets. An economic crisis can actually be the best time for forex traders as money can be made in both rising and falling economic situations. All that is needed are rate fluctuations, not growth per se.