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Favorite Forex Fun Facts (Repeat that Five Times Fast)

Favorite Forex Fun Facts (Repeat that Five Times Fast)

By Mateo Jarrin Cuvi

An industry worth close to $2.5 quadrillion—first time we see that word on paper—should be somewhat interesting, no?

What if we told you more than $8 trillion are traded on a daily basis in the Forex market?

A market of that magnitude must be full to the brim with these types of golden nuggets of information, right?

Here are some of our favorite Forex fun facts!

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Bearing Bulls

Seen a bull swing its head from the ground up in search of the bullfighter making a fool of him with grandma’s red tablecloth?

What about a starving bear swatting at the trout speeding by it in a creek?

These movements—head upwards, paw downwards—also define trading’s bulls and bears.

As you should know by now, bulls are those traders who go long (or buy, buy, buy) and expect the market to trend upwards. They are optimists at heart, maybe like the actual bull who hopes that after so many attempts he’ll finally pierce his bully.

Bears, on the other hand, go short (or sell, sell, sell) and believe prices will move south. These traders are the pessimists of the bunch.

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God Bless the Queen

The US might have the world’s largest and most powerful economy, but it ain’t even close to being Forex’s headquarters.

That honor goes to the United Kingdom.

According to data released in 2019 by the Bank of International Settlements, when it comes to turnover of OTC foreign exchange instruments, the UK leads with 43.1% of the activity followed by the US, Singapore, Hong Kong, Japan and Switzerland at 16.5%, 7.7%, 7.6%, 4.5% and 3.3%, respectively.

How do you spell “rout” in Forex?

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Cuckoo Currencies

Currencies traded on the Forex market have monikers of their own.

Two of the more interesting ones are the avian-themed nicknames given to both CAD and NZD.

The Canadian dollar or CAD is also known as the Loonie after the country’s common loon, a duck-like bird found throughout the country and which regales one side of Canada’s one-dollar coin.

The New Zealand dollar or NZD is called the Kiwi, surprisingly enough not after the fuzzy fruit that was commercialized in and exported to all corners of the world from the island nation.

Kiwi is actually an adorable flightless bird that is endemic to New Zealand and has become a sort of icon for the islanders. This bird is also featured on the one-dollar coin.

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The Genesis of the Modern Forex Market

The collapse of the Bretton Woods system in 1973 marked the birth of the Forex market as we know it.

For those of you who slept through your Macroeconomics 101 class, the Bretton Woods system, which was established towards the end of WWII, pegged the US dollar to the value of gold and then the rest of the world’s currencies to the American coin.

In the 1970s, once the US realized it hadn’t stashed away enough gold to back the amount of American dollars in the market, the government led by Richard Nixon decided to unpeg the USD from gold.

With this decision, countries throughout the world were afforded the option of determining their preferred currency exchange arrangement, albeit one that did not include gold in the equation.

As explained by Investopedia, nations worldwide “could, for example, link its value to another country’s currency, or a basket of currencies, or simply let it float freely and allow market forces to determine its value relative to other countries’ currencies.”

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Battle of the Currencies? Not Quite There Yet!

Will Bitcoin and its crypto brethren ever reach a stage at which they could challenge Forex in terms of size, popularity and value?

Despite Bitcoin’s recent crash, the cryptocurrency market is currently valued at close to $1.6 trillion with almost $79 billion being traded on a daily basis and growing.

Bitcoin, of course, accounts for 45% of that value followed by Ether with about 17.5%.

If you just look at the numbers, digital assets still have a long way to go to reach the magnitude, liquidity and importance of the Forex market.

Whether or not this gap will narrow as cryptocurrencies become more popular and widely embraced by the financial world is yet to be seen.

But it will surely be a fascinating journey!

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Crashes Are For Dummies

Did you know that the Forex market has never (and probably will never) go through a financial crisis of its own?

Because it’s made up of many different currencies, the Forex market cannot crash per se. Yes, one currency can fall precipitously, but this will not generally affect the market as a whole.

Why’s that?

Let’s say there is a massive global shortage of tea and crumpets that leads to massive depression among UK citizens. Workers stop showing up for their jobs, instead sitting at home in the dark, rewatching episodes of The Great British Bake Off and reminiscing on the olden days when tea time was a spirited celebration of everything that’s right in the world.

As a result, the GBP crashes with hundreds of thousands of traders selling the UK’s coin in favor of the USD and EUR. So while the GBP depreciates (i.e. loses value), the USD and EUR will appreciate or gain value as demand for these currencies, in lieu of the GBP crash, rises.

The key here is that Forex is traded in currency pairs: When one currency goes down, there’s another one on the other side of the equation that must go up, balancing things out for the market.

Of course, unlike Forex, the poor stock market can crash and do it with plenty of panache.

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Rice Merchants to the Rescue

You better thank the rice-obsessed. If it wasn’t for them, you wouldn’t have one of your favorite price chart formats.

Japanese candlesticks, believe it or not, were fathered in the 18th century (yeah, that’s the 1700s) by a Japanese rice merchant.

Following the establishment of a futures market for rice in 1710, Homma Munehisa’s studies in historical price patterns and weather conditions affecting the production of rice powered the development of these candlesticks.

He jotted down all of his processes and rules in Sakata’s Constitution, which includes five fundamental patterns that laid the foundation for the candlesticks: three mountains, three rivers, three gaps, three parallel lines, and three methods.

These stick figures were then popularized across the trading world by Steve Nison’s book Japanese Candlestick Charting Techniques.

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There Are No Secrets Here

Probably one of the best fun facts of the Forex market is that it’s easily accessible to people from all walks of life.

As long as you have an Internet connection, you can download MT4, find a broker that treats you well, and start trading.

Plus, everyone—even the big boys at the big banks—have equal access to the information being released during each market-moving event.

When the US Census Bureau issues its latest figures on retail sales or the Bureau of Labor Statistics tells us about employment conditions in the country, these details are not privy to a select, well-connected few. These figures are actually available to all at an equal level.

If you add to this Forex’s high liquidity and low financial barriers to entry, you’ve got a market that is an equal-opportunity provider. In this market, you’ll always find someone willing to take your trade, and you can start trading with as little as $50 as your minimum deposit.

So what are you waiting for to jump in?

To check out a list of all of our ongoing promotions and offers, have a look at our website here.


*Any opinions, news, research, analyses, prices or other information contained here are provided as general market commentary and do not constitute investment advice. FXPRIMUS does not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.


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