Forex Facts Just Funny and interesting
The GBP/USD currency pair is known as the ‘cable’. This is because prior to fibre optic technology and global communication satellites, the London and New York stock exchanges were connected via a giant steel cable, laid under the Atlantic. So if you think lag can be bad today, can you imagine what it would have been like if something ever went wrong with that cable?
The most widely traded currency pairs, from both the Majors and the Minors, are:
Some banks are known to allocate as much as 20-30% of their funds into the Forex market and generate between 40-60% of their total profits through trading currencies. This is by far their most lucrative endeavour.
Since the introduction of the Internet, the vast majority of all retail currency exchange happens online rather than on exchange floors. This allows for the market to be accessible to anyone in the world, regardless of location, as long as you have an internet connection.
There is no central bank in Forex, and the price of currencies essentially floats, with Market Makers setting exchange rates.
Forex is the most liquid market in the world.
Many are looking for the perfect trading system, which they call the ‘holy grail’. While many claim to have found it, none have yet passed the test of time.
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.
In 2008, Zimbabwe experienced the worst inflation of currency in history of 6.5 sextillion percent. Not a good day for trading the ZWD.
If you spent one dollar every second around the clock, it would take you 31,688 years to spend a trillion dollars.
Forex Fact Just Funny and interesting