Six Little Known Facts About Forex Investing
Have you ever invested in the forex markets? Or maybe you are considering doing so. If so, you may be interested to learn six little-known facts about forex investing. They might not make you a more successful trader, but you never know, you might learn something new!
1. The primary purpose of the forex market is actually to facilitate international trade between countries with different currencies, not (as many people think) to enable forex traders and investors to try to make money off each other.
2. Until around forty years ago, you would not have been able to invest in forex. It was only in the 1970’s that the Bretton Woods fixed exchange rate regime (established at the end of World War II) migrated across to a floating rate environment.
3. When investing in forex, you are participating in the world’s largest financial market, with an average daily turnover of nearly four trillion dollars.
4. As a forex investor, you can be located anywhere in the world and trade 24 hours a day, 5-6 days a week. But if you are in London then you are right at the centre of the activity, because a third of all trading in forex worldwide takes place in the UK’s capital city.
5. If you want to invest in forex, you don’t have to stick with the cash market. You can trade forex futures and options on a variety of exchanges around the world, the largest of which is the CME (Chicago Mercantile Exchange).
6. Probably the most successful forex trader ever is Hungarian currency speculator George Soros, who on repeated occasions has taken on central banks around the world and won. He reportedly made a billion dollars on the UK’s “Black Wednesday” in 1992 and in 1997 he was blamed by former Malaysian Prime Minister Mahathir Mohamad for causing the devaluation in the Malaysian Ringit. He is also one of the world’s biggest philanthropists.
So there you have it. Six pieces of trivia about the forex market! Happy trading….
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