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Monday, 7 January 2008

10 amazing facts abt forex

1. Forex is the most liquid market in the world, thus making it easy to trade most currencies.
2. Unlike equities or futures trading, you pay no commissions on the Forex deals that you make.
3. According to the Wall Street Journal Europe, the most commonly traded currencies on the Forex market are the U.S. Dollar (USD), the Japanese Yen (JPY), the Euro (EUR), the British Pound (GPB), the Canadian Dollar (CAD), the Australian Dollar (AUD), and the Swiss Franc (CHF).
4. The most commonly traded currency pairs are the U.S. Dollar and the Japanese Yen, the U.S. Dollar and the Euro, and the U.S. Dollar and the Swiss Franc.
5. The U.S. Dollar is involved in nearly 90% of all Forex transactions.
6. Ten financial institutions account for nearly 73% of the total Forex trading market volume. The Top 10 most active traders are Deutsche Bank (17.0%), UBS (12.5%), Citigroup (7.5%), HSBC (6.4%), Barclays (5.9%), Merrill Lynch (5.7%), J. P. Morgan Chase (5.3%), Goldman Sachs (4.4%), ABN AMRO (4.2%), and Morgan Stanley (3.9%).
7. The five major Forex trading centers are London, New York, Tokyo, Sydney, and Frankfurt.
8. The three major Forex trading countries are the United Kingdom (32.4%), the United States (18.2%), and Japan (7.6%).
9. Currency market players typically use Forex analysis as a means of predicting currency price movements.
10. Margin is referred to as the collateral needed to facilitate the Forex deal. Usually, this is a very small portion of the entire deal, say 1% or 1:100.