Everything we know of today, including the forex market, had a genesis. And everything known of the forex market by an Australian broker has a plethora of facts not many know of. In this piece, you will get to learn a few of those facts. Some you might have a hint on, some, you might have never imagined. So want to uncover the mystery with us?
Read on.
Forex trading is an ancient activity
A record known as the Talmud foreign currency attests that forex exchange is not a new activity. As a matter of fact, the business of money exchange dates back to biblical times. Sure, how it is done today differs significantly as to how it was done before. Back in those days, physical stalls with moneychangers would do the exchanges, and they would earn a commission depending on how much they exchange per day. This same format of exchanging money is seen in Egyptian history.
The dominant currency is the US Dollar
Despite the forex market holding almost all the world’s currency categories, the US dollar seems to be the most dominant. And that is why it is the most compared currency to every currency. That is why every currency value is compared to the dollar.
The forex market is among the first industry to use fiber optics
Fiber optics is a standard communication locomotion channel from one computer to another that transmits info and data at light speeds. When it was just introduced into the world, the forex market was the first to use it in conjunction with satellite technology. The fiber optics connected the New York and London markets, to begin with. That is why the GBP/USD pair of currency is called the cable duo.
The bear and bull terminology used in the forex trading had a background meaning
Specific traders have individual styles they use to trade with, and the two most known behavior is the bearish and the bullish trading styles. And these styles are based upon the native behavior of these animals. Bulls have a habit of striking their target and pushing them upwards, while the bear hits their prey in a downward motion. So when a trader is fond of being optimistic are termed as bullish, while the ones who pessimistic and capitalize on drops are called bearish.
There was a time forex trading was an exclusive activity
There was a time that only banks, companies, and other financial institutions were the only participant in the forex market. The rules have since then eased up, and now even individuals can trade. This has resulted in the growth of the industry tenfold since the initial investments have multiplied as well.
Take away
Trading in the forex market is exciting, and it is always good to know a bit of extra background info about the market. Otherwise, how else will you learn? These facts should put somethings into perspective and add some value to your trading since now you know more!
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