Apiary Fund Blog

Facts about Investing in Currencies

[fa icon="calendar"] May 3, 2019 5:55:00 AM / by Lukas MacMacKen

Apiary Fund reviews many different strategies, LPs, pairs, and more. When you look into the FOREX market as much as Shawn Lucas and the rest of the Apiary Team, you come upon some pretty interesting facts. Some people think investing in FOREX is only serious business. However, a little bit of fun and knowledge never hurts, especially when talking about something you want to go into and have a greater understanding of. So, here are some of Apiary Fund’s favorite and most interesting facts about trading FOREX.

The GBP/USD pair has a special name. This pair is referred to as “The Cable." Before all the international communication methods there are today, a large steel submarine cable ran under the Atlantic and connected the London Stock Exchange to the New York Stock Exchange and allowed for communications between the two countries. Since this was the first communication method for this purpose that spanned such great lengths, the Great British Pound to the US dollar trading pair is sometimes called “the cable.”

On top of the USD having a special connection with the Pound, it's also one of the most commonly traded currencies, giving it a special something with most other currencies. Approximately 80% of trades that are pushed through the FOREX market every day have the USD in them. With the EUR/USD being the top traded pair, this still leaves a lot of transactions possible that other pairs would be involved in. But all in all, the USD reigns in most every transaction on the market.

With the USD being a common factor in that many trades, think of how many actual United States Dollars change hands throughout the day! FOREX accounts for over five trillion dollars of trading and investing transactions per day! To put this in perspective, or as much perspective as we can really offer, the Federal Reserve stated that as of January 31st 2019, there's approximately $1.70 trillion USD in circulation. This means that in FOREX transactions, there's over 3 times the total net worth of all the cash in America pushed through the markets every day. Now, of course, a lot of the funds that are pushed through are the same “bills.” A scalper can easily push through $100,000 by quick buys and sells of $1,000 trades. But still, the quantity of money LPs and computers process per day is incredible!

While 80% of trades in the FOREX market contain the USD, only about 20% of trades are placed in the U.S. London is the main FOREX powerhouse with over 40% of currency trades being placed through London. While London does the most transactions, our cable pair is usually between the 3rd to 5th most commonly traded pair with the EUR/USD taking first place consistently.

The top five traded currency pairs are the EUR/USD, USD/JPY, AUD/USD, USD/CAD, and GBP/USD. The listed order is pretty typical for the order of trades being pushed through. However, the pairs do change positions sometimes in popularity. But how could there not be small fluctuations with over $5 Trillion traded daily?

While these FOREX factoids are some of Apiary Fund's favorite reviewed facts, there are countless more about the most popular market in the world. Let us know which of these facts is most interesting to you or any additional facts you may know about FOREX that you want to share with the Apiary Fund community. Also, feel free to let us know in the comments what about FOREX you’d be most interested in seeing discussed origin-wise or in other regards so that we can help you on your learning path!

Topics: Trader Tips, Trading History, trading forex, apiary fund review, currency market

Lukas MacMacKen

Written by Lukas MacMacKen

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