7 Foreign Currency & Forex Facts Worth Knowing

7 Foreign Currency & Forex Facts Worth Knowing:

1. If a currency is free-floating, its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand.

2. Exchange rates for currencies change almost constantly.

3. A movable or adjustable peg system is a system of fixed exchange rates, but with a provision for the devaluation of a currency. For example, between 1994 and 2005, the Chinese yuan (¥) was pegged to the United States dollar at ¥8.2768 to $1. The Chinese were not the only country to do this.

From the end of World War II until 1970, Western European countries all maintained fixed exchange rates with the US dollar based on the Bretton Woods system.

4. The Forex, also known as the Foreign Exchange, is the largest trading market in the world, with over 5 trillion dollars traded daily.

5. The 7 Major World Currencies: US Dollar, Japanese Yen, Swiss Francs, Australian Dollars, British Pounds, Euro Dollars, and Canadian Dollars

6. The currency trading market was designed not to falter. If one country’s gross national product falls, although some traders might lose money temporarily, other traders will be quick to buy the now lower priced currency. If enough people jump on the bandwagon and follow suit, the currency may make a total comeback or even end up higher than before the fall.

7. The market operates 24 hours a day, 5 days a week. Many traders trade Forex for a living.

Understanding The Forex Market – https://www.mastersofmoney.com/understandingtheforexmarket/

Risk disclosure: *All investments involve risk. Before making any financial or investment decisions, we highly advise that you seek the advice of a properly licensed and trained investment professional.

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