10 Facts About Forex Trading

Updated October 23, 2026

Forex is the largest financial market in the world, and a lot of what gets repeated about it is either outdated or wrong. Here are ten facts worth knowing, including one correction to a claim that regularly appears in articles like this. Updated September 2026.

1. It dates back further than you would expect

Currency exchange is ancient. Evidence of an Egyptian currency market goes back to the 4th century, and money changing existed wherever trade crossed borders.

The recognisably modern version began roughly 500 years ago in the Netherlands, where merchants needed to exchange currencies to trade internationally. The gold standard followed in 1875, and it ended with the Bretton Woods system in the 20th century, which established the framework for floating exchange rates.

2. Daily turnover exceeds 7 trillion dollars

The Bank for International Settlements measures forex turnover every three years, and the most recent survey put average daily volume above 7 trillion dollars. Earlier figures of 5 to 6 trillion appear in older articles.

For scale, global equity markets trade a small fraction of that daily. The size means deep liquidity on major pairs: orders fill at expected prices even in reasonable size, which is not true of thinner markets.

3. The dollar drives almost everything

Every major pair involves the US dollar: EUR/USD, GBP/USD, USD/JPY, USD/CAD, AUD/USD, USD/CHF and NZD/USD.

s we evolved, currency markets evolved

• The dollar is involved in around 80% of forex trading volume

• Roughly 61% of global foreign bank reserves are held in dollars

• Around 40% of the world's debt is denominated in dollars

US events therefore move the entire market. Federal Reserve rate decisions, inflation prints and the consumer price index affect every major pair simultaneously, which is why a US data release matters even when trading a pair you might not associate with America.

4. GBP/USD is called cable

The nickname dates to the 19th century, before fibre optics. Exchange rate information between London and New York travelled through a transatlantic submarine telegraph cable, and the name stuck.

5. EUR/USD is called the fiber

A deliberate update to cable. Fibre optic lines replaced telegraph cable in the late 1990s, and the newer pair took the newer technology as its name.

• AUD/USD: Aussie

• USD/CAD: Loonie

• NZD/USD: Kiwi

• USD/CHF: Swissy

• EUR/JPY: Yuppy

• GBP/JPY: Guppy

• EUR/GBP: Chunnel

6. London, not New York, is the centre

Despite the dollar's dominance, the United Kingdom accounts for roughly 41% of global forex trading against around 19% for the United States.

The EUR/USD slang name is an Fiber

USD makes the market move

London's position dates back to its role as an imperial trading hub, and the infrastructure and expertise concentrated there have persisted, including through Brexit uncertainty. The London session is the busiest of the trading day as a direct result.

7. Forex is not free of violent moves

Major currency pairs typically move less in percentage terms than individual stocks or cryptocurrencies, because currencies are backed by states and central banks act to smooth disorderly conditions.

But the claim that forex avoids wild swings, which appears in many articles including earlier versions of this one, is wrong and it is dangerous advice.

In January 2015 the Swiss National Bank removed its franc peg and EUR/CHF moved roughly 30% in minutes, leaving retail traders with negative balances and putting at least one broker out of business. In October 2016 sterling fell around 6% within minutes in a flash crash. Emerging market currencies including the Turkish lira and Argentine peso have repeatedly lost large fractions of their value.

Add typical retail leverage to any of these events and an account is gone before a stop can execute. Lower average volatility is not the same as safety, and negative balance protection exists precisely because this happens.

8. The market never sleeps

Forex runs 24 hours a day from Sunday evening to Friday evening, as trading moves between the Sydney, Tokyo, London and New York sessions.

This is a genuine advantage for anyone trading around other commitments, but it also means positions stay exposed while you sleep. Overnight moves and weekend gaps are the reason stop orders matter.

9. It used to be closed to retail traders

Forex was once an institutional market requiring very large capital. Online brokers, margin trading and micro lot sizes opened it to individuals, which is why an account can now be opened with modest sums.

The same access brought the leverage that makes retail forex risky, which is why regulators in the EU and UK now cap it at 1:30 for retail clients.

10. Studies find women outperform on average

Several studies of trading accounts have found that women achieve better average returns than men, and the explanation researchers point to is behavioural rather than analytical.

The consistent finding is that men trade more frequently and with greater confidence in their own forecasts. Higher turnover means higher costs, and overconfidence leads to larger positions held longer against the evidence. The lesson applies to everyone: fewer, better considered trades tend to outperform more of them.

Compare regulated platforms in our forex brokers section and see related trading guides.

Forex facts: frequently asked questions

How big is the forex market?

Average daily turnover exceeds 7 trillion dollars according to the most recent BIS triennial survey. Older articles citing 5 to 6 trillion are out of date.

Why is GBP/USD called cable?

Because 19th century exchange rate information travelled between London and New York through a transatlantic submarine telegraph cable.

Forex market is it’ll never disappear

Is forex less risky than stocks?

Major pairs usually move less in percentage terms, but forex has produced violent moves, including the 2015 Swiss franc event. Combined with leverage, those can wipe out an account.

Which country dominates forex trading?

The United Kingdom, with roughly 41% of global volume, against around 19% for the United States, despite the dollar's central role.

Is forex really open 24 hours?

Yes, from Sunday evening to Friday evening as trading passes between the Sydney, Tokyo, London and New York sessions.

Do women really trade better than men?

Studies find better average returns, attributed to trading less frequently and with less overconfidence rather than to different analytical ability.

Women are better traders than men