27.05.2024
Piotr Skowroński
76
27.05.2024
Piotr Skowroński
76
Today we want to share with you some interesting facts about Forex, maybe they will not open up America, but they will definitely help you to learn more about not popular but interesting Forex niches, as well as its history and how it is developing now. Women in Forex, the number of Forex traders around the world, why Germany has 9 currencies about all this you can now read and then surprise your colleagues and friends with such outlandish knowledge.
At the moment there are 180 currencies in the world that are recognized by the United Nations as legal tender in the foreign exchange market. These currencies are used in 195 countries, including 193 UN member states and two non-member observer states (Palestine and Vatican City).
Many people think that the most important currency trading center is the United States, but in fact the world's currency trading center is London. Let's prove it with numbers: according to CurrencyTransfer, London is the world's largest currency trading center with a 38% market share, followed by the United States with 19%. The main reasons why most Forex trading takes place in London are its geographical location, time zone, system infrastructure and historical roots as the financial center of the world.
According to the WomenInvestors 2020 study, women make up just 11% of the total number of FX traders. Surprisingly, this figure seems very low, but female traders have come a long way compared to 20-30 years ago when their market share was virtually zero.
While it is almost impossible to determine the exact number of Forex traders worldwide, it is estimated that there are 14.5 million. Not surprisingly, the total number of Forex traders is growing every year. This is due to the growing global population and the increasing availability of technical tools and software to less developed countries.
Who controls the foreign exchange market? No one. Unlike other financial markets, the foreign exchange market is completely decentralized. However, commercial banks, which participate in the foreign exchange market as market makers, are believed to have the most control and influence over currency transactions.
Since South Sudan is the newest country in the world, its currency, the South Sudanese pound, is also the newest currency in the world. The youngest currency in the world is only 12 years old and was issued in 2011 when South Sudan became the newest country in the world. The oldest currency in the world is the British pound, which has been around since 775 AD.
It's worth noting that most currency traders around the world are younger than you might think: according to Online Forex School, the 18-34 age group accounts for 18% of all currency traders. Globally, 28% of traders are in the 35-44 age group, with the remaining age groups being 45-54 (21%), 55-65 (24%) and 65+ (9%).
This question is a complex one. In theory, a crisis is unlikely because the foreign exchange market is not designed for ups and downs. Thus, it is not subject to major economic crises or shocks. One currency may fall against another, but unlike all markets, including cryptocurrencies, the foreign exchange market is a currency market and nothing more.
Theoretically, the only scenario in which a currency market could disappear is a lack of liquidity. In other words, it could happen when there is no trading volume and the value of a currency pair has no impact on the economy or financial system. For this to happen, people must lose faith in the financial system and the foreign exchange market and switch to other fiat currencies.
Unfortunately, most people who trade Forex lose money over time. According to some studies, 90-95% of traders lose money in Forex and eventually stop trading. There are many reasons for this, including the use of high leverage, lack of discipline and sound trading plans, and the use of inadequate risk management systems.
Germans are usually known for their pragmatism, efficiency and stability. However, this is not the case when it comes to their currency. In fact, the history of the German currency over the past century and a half is quite interesting: since 1873, no less than nine different currencies have been used in Germany. These include the gold mark, paper mark, lentmark, Reichsmark, salmark, salfranken, East German mark, deutschmark and euro. Today, Germany is the most influential country in the Eurozone and has the biggest impact on the value of the Euro.
The FX market certainly has its own unique characteristics. As the largest financial market in the world, valued at around 2.4 billion dollars, and a unique decentralized system, the FX market is undoubtedly special. But not only that, the Forex market is also essential. People exchange currencies, global companies trade, and importers and exporters exchange goods and services.
Liquidity is a key element that makes the Forex market so efficient. Unlike stock and commodity markets, currency trading has no liquidity problems. Major currency pairs account for 85% of trading volume in the FX market, but smaller, specialized currency pairs also account for a significant amount of liquidity. So far, we don't see any liquidity problems in the Forex market. This is another reason why currency trading attracts so many people from all over the world. Anyone can enter the market, make partial trades and use leverage without much difficulty. In addition, opening a trading account is very easy and usually only takes a few hours or a day or two.
Overall, the foreign exchange market is probably the most attractive financial market for individual investors. The barriers to entry are low and the trading conditions offered by Forex brokers are excellent: almost zero commissions, free trading platforms and low initial margins. In addition, there are many online resources to help you begin to learn Forex trading.
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