Ten Cold Knowledge Of Foreign Exchange Industry

The foreign exchange industry is one of the most stressed industries in the world. Even in the face of the new epidemic, it still shows the tenacious vitality of the industry. This seemingly serious industry is worth discovering and exploring. The following section will share some interesting foreign exchange knowledge for you.

Top ten cold knowledge of foreign exchange industry

1. More than 95% of retail foreign exchange traders lose money  

The foreign exchange market is the largest and most liquid financial market in the world. However, most traders are only addicted to the illusion created by the so-called "5%".

According to the survey, 99.6% of foreign exchange traders are unable to make profits for four consecutive quarters, and eventually either fail or give up trading.

  2. Money also has a nickname  

In foreign exchange trading, for convenience of address, trader will give currency a nickname, just like nickname for an old friend.

For example, U.S. dollar, among many nicknames, the most famous are greenback and buck. Greenback was named because of the green paper money issued during the American Civil War in 1861; Buck originally refers to buck, because American Indians used to exchange deer skin for us dollar currency, so it has this nickname.

However, there is a second explanation for "buck". Buck can refer to "a hunting knife made of deer antlers". In the late 19th century, cards were popular in the western United States. Everyone passed a buck on the card table, and whoever passed it was dealt the card. From this, the phrase "pass the buck" came into being, which is a metaphor for "kicking the ball and shirking responsibility".

In the office of former President Truman of the United States, there is a sentence: "the buck stops here", which means "the responsibility is borne by me alone". Later, although silver coins replaced hunting knives as licensing tools, they were still used to be called buck. From this, Buck also had the meaning of "money" and gradually evolved into "US dollar".

GBP – Sterling / quid

Euro – single currency / fiber

Swiss Franc (CHF) - Swiss

CAD - Loonie

Aussie or Ozzie

New Zealand dollar (NZD) - kiwi

3. The history of foreign exchange trading dates back to biblical times  

Although the modern foreign exchange market has a short history, trading has a long history.

The Jewish code records foreign exchange transactions in biblical times, and how money changers set up stalls outside temples frequented by foreigners, and then exchange them for another currency and charge exchange fees there. The history can be traced back to 260 B.C.

4, Zimbabwe dollar - the most serious currency fluctuation in history

The sharp depreciation of the Zimbabwe dollar in 2008 set the most serious currency fluctuation record in foreign exchange history.

Although Venezuela's inflation rate has soared alarmingly, it still falls short of Zimbabwe's "older generation.". The inflation rate is even more staggering, as high as 65 billion million percent.

  5. What is the average daily foreign exchange trading volume in the world?

In 2019, the global average daily foreign exchange trading volume has reached 6.6 trillion US dollars. What is the concept of $6.6 trillion / day? That's enough money to buy two high-end cars for every family in the United States.

The pound once dominated the global foreign exchange market  

Despite the fact that today's currency transactions involving the US dollar account for 87% of all currency transactions, it is the largest currency in the world. But as early as the early 20th century, it was indeed the pound that dominated the international financial industry. In 1913, almost half of global foreign exchange transactions involved the pound.

  7. The United States is not the world's largest foreign exchange market  

In fact, only 19% of the world's foreign exchange transactions take place in the United States, 43% in London, the United Kingdom, and less than 40% of the rest of the world's foreign exchange transactions.

8. Deutsche Bank is the world's largest foreign exchange player  

Although Germany has a relatively small foreign exchange market, Deutsche Bank is the world's top ten foreign exchange dealers with a market share of 15.68%. Citigroup followed closely, at 12.3%, and at Barclays 11%. The world's top 10 players already account for 80% of the foreign exchange market.

  9. The global foreign exchange market trades 24 hours a day  

Because of the time difference, the foreign exchange markets in the world alternate in business hours, forming a cycle operation pattern.

  The modern foreign exchange market began in 1973  

Foreign exchange trading has a long history, no one can say clearly when foreign exchange trading started.

But modern foreign exchange markets began in 1973, the year that marked the end of the Bretton Woods system and the advent of the era of floating exchange rates.

After the Second World War, according to the signed Bretton Woods Agreement, the exchange rate of each country's currency against the US dollar can only fluctuate within 1% of the legal exchange rate. From 1972 to March 1973, the foreign exchange market was closed due to the influence of the Bretton Woods Agreement and the European Union floating agreement.

Therefore, 1973 is the real historical turning point of modern foreign exchange market. In this year, the era of exchange rate constraints, bank transactions and restricted foreign exchange transactions between countries ended, and the market began to enter the era of full floating exchange rate.

In China, from the domestic market and a series of signals released by the "central mother", the foreign exchange industry has an irresistible trend, and China's foreign exchange market is also expected to become the most attractive emerging sector in the global foreign exchange market.