Thursday, 31 May 2012

10 Interesting Forex Trading Facts

Forex trading is actually over- the- counter financial market for trading currencies and has a global coverage. In the forex market, umpteen different buyers and sellers trade in different currencies and the forex exchange market determines the relative value of each currency. The core purpose of this market is to facilitate the international business community as it allows the conversion of one currency into another. Forex market is also used for speculation purpose and it is all about that how well can you play with a currency in terms of its future worth or value in the market.
For all those who are interested in Forex trading, here are some facts about this system to give you more knowledge on this so let’s get to the 10 interesting forex trading facts
Forex 10 Interesting Forex Trading Facts

10. Forex is the most liquid market and so trading is very convenient and easy on this.
9.
You have to pay no commission on all your forex dealings, unlike the futures and equity trading.
8.
Most commonly traded currencies in the forex market as per the Wall Street Journal Europe are; U.S. Dollar (USD), the Japanese Yen (JPY), the Euro (EUR), the British Pound (GPB), the Canadian Dollar (CAD), the Australian Dollar (AUD), and the Swiss Franc (CHF).
7.
Among all the currencies, the hottest currency is U.S Dollar and it is involved in nearly 90% of the transactions.
6.
There are some financial institutions which play very active role in the forex trading and therefore account for 73% of the total forex market trading volume and these institutions are; Deutsche Bank (17.0%), UBS (12.5%), Citigroup (7.5%), HSBC (6.4%), Barclays (5.9%), Merrill Lynch (5.7%), J. P. Morgan Chase (5.3%), Goldman Sachs (4.4%), ABN AMRO (4.2%), and Morgan Stanley (3.9%).
5.
Although the forex trading encompasses nearly the whole world but the main forex trading centers are London, New York, Tokyo, Sydney, and Frankfurt.
4.
The three prime forex trading countries are the United Kingdom (32.4%), the United States (18.2%), and Japan (7.6%).
3.
If you have a risk-averse attitude and intend to invest in a safe but low-profile currency then go for the Swiss Franc.
2.
If you take an active part in forex trading, then be sure not to miss the world news as it will be of great patronage to you in your dealings in forex market.
1.
An interesting definition of forex market by Howard Abell is, “The [Forex] trading system gives the trader the ability to control his or her emotional states rather than allowing them to control him. A [Forex trading] system is a disciplined method for organizing dynamic, ever-changing market phenomena.” I am sure this will help you get a feeling on what is the forex market all about.


fx market 10 Interesting Forex Trading Facts

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