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10 Trivia Of The Foreign Exchange Market!

10 Trivia Of The Foreign Exchange Market!

This seemingly boring foreign exchange market is actually full of many interesting things! It’s just that few people know about it. Today, let’s share some trivia of the foreign exchange market that you may not know!

Worst currency volatility in history

The current exchange rate fluctuations are very small. But the 2008 Zimbabwe dollar went to the other extreme. It became the record for the worst currency volatility in history, with inflation an astounding 6500000000000%.

How many cars can you buy with the global average daily foreign exchange trading volume?

The average daily trading volume in 2019 has reached 6.59 trillion US dollars. After many years, the average daily trading volume of the foreign exchange market has more than 12 times. That’s enough money to buy you a couple of nice little cars for every family in America.

UK is the world’s largest foreign exchange market

You may think that the United States is the center of foreign exchange trading. But not so. 41% of the world’s foreign exchange transactions take place in the United Kingdom, only 19% in the United States. The remaining countries combined account for only 40%.

Most retail forex traders can’t stay profitable for 1 year in a row

We all want to be profitable. But most people are not good at trading. According to the survey, 99.6% of retail foreign exchange traders have not been able to be profitable for 4 consecutive quarters.

GBP/USD is also known as “Cable”

Before fiber optics and global communications satellite technology, the stock markets in London and New York were connected by cables laid across the Atlantic. Therefore, GBP/USD has been called Cable to this day.

Citibank is the number one player in global foreign exchange

In Euromoney’s annual survey of participants in the global foreign exchange market with an average daily foreign exchange trading volume of $5.1 trillion, Citibank still ranked first in the global foreign exchange market with a 12.9 percent share. The former “biggest” Deutsche Bank fell to fourth place, followed by JPMorgan Chase and UBS in second and third place. The top 10 players in the world account for 80% of the foreign exchange market.

The modern foreign exchange market began in 1973

Forex trading has a long history, but the modern Forex market was started in 1973. This is also the dividing line when the Bretton Woods system was abolished after World War II and the era of floating exchange rates came.

Forex trading history dates back to biblical times

We believe that the history of the foreign exchange market is not long, but the capital transaction has a long history. “Exchangers” were first recorded in the Talmud, and of course, such exchangers also charge commissions or fees.

Before 1908, U.S. banks could print their own currency

The Federal Reserve was not formally established until 1908. Before that, any U.S. bank could issue its own currency. This can be said to be the result of a country’s lack of fiscal control.

Pound once ruled the global foreign exchange market

The most traded currency today is the USD. But in the early 20th century, the pound was the real global currency. In 1913, almost half of all global foreign exchange transactions involved pound.

Are you curious about the background of these knowledge? If you want to know more, please pay attention to the update of our blog!

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