10 Surprising Facts You Didn’t Know About the Forex Market  

What if your location, schedule, or background no longer limited your financial potential? The foreign exchange market has become one of the most accessible paths for people who want more control over their money, their time, and their future. 

Once reserved for powerful institutions, Forex is now open to anyone willing to learn, offering 24-hour opportunities, global reach, and the chance to profit from how the world moves. Every day, people at every stage of their trading journey use this market to sharpen their skills, diversify their income, and take real steps toward more financial confidence. 

But success in forex isn’t about luck; it starts with understanding what makes this market truly different. The following 10 surprising facts about forex may change how you see money, opportunity, and what’s possible for you. 

1. Forex is the largest market in the world 

You might think the New York Stock Exchange is the heavyweight of the financial world, but in terms of volume, it doesn’t even come close.  

The forex market is the largest and most liquid financial market on the planet. According to the recent Triennial Central Bank Survey by the Bank for International Settlements (BIS), trading in global foreign exchange markets reached a staggering $7.5 trillion per day. 

To put that into perspective, that daily volume is larger than the annual GDP of Japan or Germany. It dwarfs the daily trading volume of the NYSE, which typically sits around $20-$30 billion. 

Why does this matter to you? 
Liquidity. Because the market is so huge, there is almost always someone willing to take the other side of your trade. This high liquidity generally leads to tighter spreads (lower transaction costs) and means you can enter and exit trades instantly, without worrying about getting stuck in a trade position. 

If you’d like to go deeper, our blog explains how liquidity providers work in the forex market. 

2. The first modern forex market emerged in the 1970s 

While people have been exchanging currencies since ancient times, the modern forex trading system, as we know, is quite young. 

For decades, the global economy operated under the Bretton Woods system, established in 1944. Under this agreement, major national currencies were pegged to the US dollar, which was in turn convertible to gold at a fixed rate of $35 per ounce. This created a rigid system of fixed exchange rates that offered stability but lacked flexibility. 

Everything changed in the early 1970s. Facing rising inflation and a growing trade deficit, President Richard Nixon suspended the convertibility of the dollar into gold in 1971, an event historically known as the Nixon Shock. 

This move effectively ended the Bretton Woods agreement. By March 1973, major currencies began to float against one another. The value of currencies was no longer dictated by government decree but by market forces: supply and demand. This transition brought about the modern, decentralized foreign exchange trading market we engage with today, opening the door for speculation and the high volatility that traders love. 

3. The British Pound is the world’s oldest currency still in use 

There’s something captivating about the way history’s enduring pieces still stand tall in a market now ruled by technology. 

The British Pound Sterling (GBP) holds the title of the world’s oldest currency still in continuous use. 

According to the Royal Mint, the United Kingdom’s official maker of British coins, the pound’s history dates to around AD 775 in Anglo-Saxon Britain. The term “Sterling” referred to the silver pennies used at the time, 240 of which weighed exactly one pound. 

While the physical coins and notes have evolved dramatically over 1,200 years, the Pound has maintained its identity through wars, empires, and economic crises. It predates the US Dollar, the Euro, and even the existence of many modern nations. 

Today, it remains a powerhouse. Known among traders as “Cable” (a nickname dating back to when transactions were communicated via undersea cable between London and New York); the GBP/USD pair is one of the most liquid and widely traded assets in the world. 

4. The US Dollar is king 

There is a reason the US Dollar (USD) is often referred to as the “Greenback” or the world’s reserve currency. It is the undisputed king of the forex jungle. 

Recent data from the BIS Triennial Survey reveals that the US dollar was on one side of 88% of all forex trades. Whether you are trading the Euro, the Yen, or the Aussie Dollar, chances are you are trading it against the USD. 

Furthermore, the International Monetary Fund (IMF) reports that as of 2024/2025, the US dollar comprises nearly 58% of allocated global foreign exchange reserves. Central banks across the globe hold massive amounts of USD to facilitate international trade and stabilize their own economies. 

Why is it so dominant? 

• Commodity pricing: Most global commodities, including oil and gold, are priced in USD. 

• Safe haven: During times of economic uncertainty, investors flock to the dollar for safety. 

• Global debt: A significant portion of global debt is issued in USD. 

For beginner traders, this means keeping an eye on the US economy is non-negotiable. News from the Federal Reserve or US employment data will ripple across almost every pair you trade. 

5. Currencies are always traded in pairs 

Trading forex is easier to understand than it sounds. Imagine buying fruit at a supermarket: you exchange cash for apples or bananas.  

In forex trading, you’re buying one currency while selling another. Think of it like shopping where you exchange one thing for another, just in a different market.  

This explains why currencies are quoted in pairs, because you buy one with the other. 

Let’s look at the structure of a currency pair: EUR/USD. 

• Base currency (first): Euro (EUR) 

• Quote currency (second): US Dollar (USD) 

When you see a price for EUR/USD of 1.1000, it means that 1 Euro is worth 1.10 US Dollars. 

• If you think the Euro will increase in value against the Dollar, you buy the pair (go long). 

• If you think the Euro will weaken against the Dollar, you sell the pair (go short). 

Because of this unique structure, you can profit regardless of whether the market is going up or down; you must pick the right direction relative to the other currency in the pair. 

Discover the most popular currency pairs on our blog to help you make more informed trading decisions. 

6. It has no central exchange  

Unlike the stock market, which operates through physical exchanges such as the New York Stock Exchange (NYSE) or the London Stock Exchange (LSE), the forex market functions as a fully decentralized market. 

There is no central building where all orders are processed. Instead, the forex market is an “Over-the-counter” (OTC) market. It consists of a global network of banks, brokers, institutions, and individual traders connected via electronic terminals and computer networks. 

What does this mean for you? 
The forex market is open to everyone. You don’t need to be in a specific office or city to take part. Anywhere with an internet connection is enough. With a trading account from a trusted broker like FXGT, you can tap directly into this global network of liquidity. That accessibility also helps keep trading costs low and pricing competitive, making forex an attractive option for beginners. 

7. Forex never sleeps 

One of the most appealing forex fun facts is that the market is open 24 hours a day, 5 days a week. 

Because the market is global and decentralized, as one major financial hub closes, another opens. 

• Sydney kicks off the trading week. 

• Tokyo and Asian markets follow. 

• London opens as Asia winds down. 

• New York opens as Europe is in full swing. 

This cycle continues from Monday morning in New Zealand to Friday afternoon in New York. This 24-hour cycle offers incredible flexibility. Whether you prefer trading late at night, or early in the morning, there is always a market open somewhere. You can learn more about the global trading sessions here. 

Tips for beginners: 
While you can trade 24 hours a day, volatility isn’t consistent. The busiest times, and often the best opportunities, occur when two major sessions overlap, such as the London/New York overlap (8:00 AM to 12:00 PM EST), where trading volume is at its peak. 

8. Central banks influence forex directly 

While supply and demand move prices day-to-day, the heavy hitters in the forex world are the Central Banks. Institutions like the US Federal Reserve, the European Central Bank (ECB), and the Bank of Japan (BoJ) have the power to move markets thousands of pips in minutes. 

They do this primarily through: 

• Raising interest rates: Higher rates make investments in that currency more attractive, bringing in foreign capital and often boosting its value. 

• Printing money (Quantitative Easing): Increasing the money supply can reduce the currency’s value. 

• Direct market intervention: Central banks may buy or sell their own currency to keep its value stable. 

A famous example occurred on January 15, 2015, when the Swiss National Bank (SNB) unexpectedly discontinued the minimum exchange rate of 1.20 francs per euro. The “Francogeddon” event caused the Swiss Franc to soar roughly 30% against the Euro in minutes, wiping out hedge funds and causing massive volatility. It serves as a potent reminder that in forex, the big players call the shots. 

9. Political events move currencies fast 

Currency prices function as a barometer for the health of a nation’s economy. Consequently, political stability, or instability, can cause massive swings in value. Elections, referendums, and geopolitical conflicts are major catalysts for volatility. 

A prime example is the Brexit referendum on June 24, 2016. When the UK voted to leave the European Union, the British Pound collapsed, falling roughly 8% against the US Dollar in a single day, the biggest one-day fall in history at that time. 

Traders call this a “geopolitical risk.” When trading, it’s vital to stay updated on global news. If a country is facing political turmoil, its currency will likely suffer as investors pull their money out and look for safer assets. 

10. You’ve traded forex without realizing it 

You might think you’ve never traded currencies, but if you’ve ever traveled abroad or bought something online from another country, you’ve already participated in the forex market.  

Every time you swap your local currency for another, or pay for an imported product online, you’re selling one currency and buying another at the current exchange rate. Even the price of imported goods at your local supermarket is affected: when your currency is weak, electronics, cars, and other imports become more expensive. 

Start your trading journey today 

The forex industry is a highly volatile, exciting, and massive marketplace. It offers unparalleled liquidity, 24/7 access, and the opportunity to profit from global economic trends. 

Now that you are armed with these 10 surprising facts about forex, you have a better understanding of the landscape. But knowledge is only potential power; action is the ultimate power. 

If you are ready to take the next step, you need a partner you can trust. Open an account with FXGT today to access real-time data, comprehensive educational resources for beginners, and a seamless trading experience on both desktop and mobile. 

Don’t just watch the market from the sidelines. Empower your financial future and make your first trade with confidence.