Interesting Facts About FOREX.

Most experienced traders consider the FOREX market to be the best and most profitable among capital markets. For many years FOREX trading has been the only
sphere of influence of major banks, major financial institutions, and central banks of countries, such as the US Federal Reserve Bank. Nowadays, however, thanks to the internet, the market has been opened up to anyone who wants to learn the best techniques in forex trading and intends to make significant profits, such as the previously mentioned institutions, which annually and consistently make quite high profits by trading in the Foreign Exchange market.

Forex is a market that oscillates continuously throughout the entire trading day and consequently offers good trading opportunities; this behavior is partly due to the increase in global trade and foreign investments over the last two decades, which has made the economy of all countries more interdependent. This means that when one country’s currency fluctuates as a result of economic activity, it also affects the currencies of other countries. For example, economic factors often affect a currency by changing the interest rate structure, which increases or decreases the value of that country’s currency and reflects the monetary health of its economy.

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It is known that some banks allocate 20-30% of their funds to the FOREX market and generate 40-60% of all their profits from foreign exchange trading. Some experts think that banks will stop lending in a few years and will better focus on currency trading as their primary source of income.

There are five main currencies in the forex market: US Dollar, Japanese Yen, British Pound, Euro, and Swiss Franc. The fact that these five currencies account for more than 70% of North American trading is due to their great popularity and high activity in world trade transactions. Of course, other currencies can be traded, including Canadian, Australian, and New Zealand Dollars. These minor currencies account for 4% – 7% of the total market volume. All these five major and minor currencies together form the backbone of the FOREX market.