If you have read several forums and online posts, you surely have an idea of how important it is to gain some knowledge about trading before you decide to join the market. After all, trading is not child’s play. Forex Trading involves money and because of that, you should be very careful of it. Trading has risks as much as it can provide huge profits to those who are privileged.
The Forex market is operating all over the world and it is open 24 hours. Because it has been introduced to the general public through online trading, currency trading hugely grew in popularity. With the use of technology, trading has been made accessible to traders from different parts of the world. Currently, there are millions of traders in the market, wanting to take advantage of it and find lucrative opportunities to invest and make a considerable amount of money along the way. There is also a lot of Forex broker in Italy that can help you trade profitably!
Facts About About Forex Trading
- Did you know that the first foreign exchange transaction can be traced back to ancient times? You definitely heard it right! According to the Talmud records, a currency exchange has been sighted back to biblical times. There are already money changers during those times that are operating on stalls and take a commission for a successful transaction. There are also currency exchange transactions that are known in the ancient Egyptian papyri that can be traced back to 260 BC.
- Before the creation of fibre optic communications and satellites, the London and New York stock markets used a large transatlantic cable. Because of this, the GBP/USD currency pair became known as the cable.
- The term bears and bulls which is widely used in the currency exchange market actually originated from the idea that a bear strikes its prey downwards whilst the bull strikes its prey in an upward direction. Because of this, traders with bullish transactions give an optimistic outlook while bearish traders are rather pessimistic with their trading outlook.
- What currency dominates the currency market? There’s none other than the currency of the most powerful country in the world – the United States dollar. The USD accommodates 80% of all trades happening in the market. Considering the huge number of transactions under USD, it gives justice to its top position in the currency market.
- 90% in currency trading is speculative and there was a time when trading currencies can only be done by huge financial institutions such as hedge funds, banks, and others that can accommodate a minimum of $40 million as liquid funds. But those dark days were all gone. Trading is now widely accessible by small-time traders and retail traders.
- Although USD takes on most of the transactions in the currency market, Wall Street is not tagged as the currency capital of the world. That seat belongs to the London Stock Exchange. This is not surprising because the UK market is handling 40% of the overall currency market while the US only accommodates 19% of the currency market.
- Previously, the Forex exchange was thought to happen in a trading place. However, nowadays, trades are now mostly done through the internet through the help of a Forex broker in Italy, which is quite convenient for everyone.