Forex Market History: Interesting Facts

Finance

The complex and exciting world of the foreign exchange market (Forex) is a universe of earning opportunities full of myths of all kinds. So, some facts to better understand this great financial sector.

This big market is impossible to regulate

Forex is a term that many have heard, but few really understand anything about it. The foreign exchange market is the largest in the world. This is evidenced by its impressive $5 trillion per day of transactions.

In this global and decentralized market, currencies are traded with an exchange rate or conversion. But Forex trading is not exactly easy. It requires a certain amount of learning time, knowledge and, above all, a lot of practice on a broker’s demo account. All the necessary knowledge about Forex trading can be obtained on the website https://bestforexbrokers.pro or similar web resources.

Forex is not exactly the ideal place to get rich quickly, and this may well be the main myth. Since most traders have misconceptions about how the market works, they lose money.

Forex is not a scam!

Modern technology has given people access to online trading. Due to the large dissemination of information, those who do not know how to trade are also attracted to trade. However, Forex is not a scam.

The UK is the largest foreign exchange market in the world

The USA is considered an influential country, but it is the UK that is the real hero of this story. 41% of all foreign exchange transactions takes place in the UKwhile only 19% occurs in the US. For the rest of the world, including Latin America, only 40% are identified.

Deutsche Bank is the world’s largest foreign exchange player

The UK as a whole is the largest foreign exchange market, but it is Deutsche Bank that is considered the best individual player in the Forex market.

Germany is a country with a relatively small foreign exchange market, but Deutsche Bank, with a market share of almost 15%, certainly says otherwise.

Forex is a zero-sum game

Zero sum is an unusual Forex term. When one makes money, the other loses it. Therefore, many associate it with poker or the casino, which is considered a huge mistake.

Losses are risks inherent in any market. Forex is a difficult sector for constant profit.

Broker required

It is clear that many of them are scammers. These are the ones that play against their client and only create headaches. But they are needed for trading.

Most brokers work for good. They research the market, which allows them to win. Their commission is an integral part of the game. After all, the bank also takes a commission, and no one makes a fuss.

Rate article
( No ratings yet )
forex-demo-account
Add a comment