Fun facts about forex industry
1. Not many people are aware that forex trading dates back to ancient times. The first currency transaction can be traced back to the Talmudic writings. Money changers were people who used to help others change their currency, while taking a commission for their services.
2. Did you know that the GBP/USD currency pair is known as the Cable in the forex market? Amused? The reason why the pair is called the Cable is that before the advent of satellites and fibre optics, the London and New York Stock Exchanges were connected via a giant steel cable that ran under the Atlantic.
3. Another interesting fact about forex is the way the traders are categorised. Traders are categorised into bulls – or those who are optimistic and believe the market will go up – and bears – the downbeat ones, expecting the markets to fall. The names are derived from the fact that a bull strikes upwards and a bear swipes downwards.
4. Nearly 90% of forex trading is speculative trading.
5. I am sure most people think that the US is the center of forex trading, since maximum transactions involve the US dollar. That is not true. In reality, 41% of all forex transactions occur in the UK, with only 19% taking place in the US. So, the London Stock Exchange is the trading hub for forex deals.