Since the forex market is one of the largest financial markets in the world, so you may already have heard a lot about it. In this piece, we share 15 interesting facts about the forex market that most people didn’t know.
Fact # 1: The forex market undergoes a daily trading turnover of more than 6 Trillion U.S. Dollars. Given below is a quick break of the whole amount traded in the forex market on daily basis.
Spot transactions – $2 trillion
Outright forwards – $1 trillion
Foreign exchange swaps – $3.2 trillion
Currency swaps – $108 billion
Options and other products – $294 billion
Fact # 2: According to research conducted by a brokerage research company ForexToStocks, the daily trading turnover of the forex market is 4 times higher than the trading volume of the global gross domestic product rate.
Fact # 3: Believe it or not, if people start spending $1 per second, then it would take them around 126,118 years to spend the money traded in the forex market in one day.
Fact # 4: In addition to some popular currencies of the world including, USD, GBP, AUD, CAD, JPY, etc, there are nearly 165 currencies of the world are traded in the forex market.
Fact # 5: Amongst all major, minor, and exotic pairs, 85% of the traders prefer to trade only seven currency pairs, including EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY, USD/CAD, and USD/CHF.
Fact # 6: Since the United States has one of the strongest economies in the world, more than 90% of the forex market transactions involve the exchange of the U.S. Dollar.
Fact # 7: According to infographics published at pinterest.com, 66% of the U.S. Dollars are held overseas by different classes of stakeholders, including individuals, corporate investors, and government foreign reserves.
Fact # 8: The New York Stock Exchange (NYSE) is by far the world’s largest stock exchange in terms of market capitalization. While the market capitalization of the listed companies at NYSE was $30.2 trillion as of February 2018, the daily trading turnover of the New York Stock exchange stands around 22 Billion U.S. Dollars. However, the NYSE still appears insignificant when compared to the forex market.
Fact # 9: Having a network that spans more than 57 countries across the globe, Deutsche Bank is one of the largest foreign exchange dealers. The bank holds a 20% share of the forex market.
Fact # 10: The forex market is also 12 times bigger than the future market in terms of daily trading turnover.
Fact # 11: The United Kingdom (UK) is a financial hub of forex traders. More than 40% of the forex transactions are conducted in the UK.
Fact # 12: Even though a large number of participants of the forex market are retail traders, still they make only 5% of the total number of forex traders.
Fact # 13: Total percentage of female traders in the forex market is estimated to be 11%. However, it could be a little less or more.
Fact # 14: According to demographics of the forex market published at www.zippia.com, 14% of forex traders are between 20-30 years, while 28% of forex traders age between 30-40 years. The average age of forex traders is 40 years that comprises around 58% of the total population of the forex market participants.
Fact # 15: Out of 100, 99% of retail forex traders fail to achieve four quarters of positive returns in a row.