: During November 2008 inflation in Zimbabwe reached an estimated 79.6 billion percent. Soon after this hyperinflation, in 2009 Zimbabwe abandoned its currency and in 2014 it was still using other countries currencies. At the height of this inflation period the government restricted bank withdrawals to $Z500,000, which was around US$0.25 (source: Wikipedia). Imagine trading Forex and being long the Zimbabwean Dollar
The GBP/USD pair is nicknamed the cable. This nickname comes from fact that during the 1800s the rate between the Pound and the US Dollar was synchronized using a large communications cable under the Atlantic which connected the London and New York exchanges. If today you are complaining about your brokers execution speed, think about how fun it was to trade Forex in the 1800s.
: In the mid 1990s Forex trading was only available to banks and institutions that were able to put together $40 million to $60 million at least
and today we whine that $1K for first deposit is too much. Ok maybe we dont whine that much, but imagine having to come up with that kind of money. In fact I dont think I would even trade if Id have that amount of money.
This is what 1 trillion USD looks like:
Now think about this: the daily turnover for the entire FX market is 5.3 Trillion USD
When you think about NYSE, I bet you always assume thats where all the big-time action happens. Well actually the NYSE daily volume is just about 22 billion USD. Sure, its more money than Ill ever see probably but compared to Forex its something like this:
: The term Bull refers to a trader who expects price to rise while a Bear is a trader who believes price will fall. These nicknames supposedly come from the way each of these animals strike: a bull charges with its horns, using an upwards motion and a bear slashes with its claws, moving downwards. There is another type of trader, although this one is less known: the Pig. Ill be honest, I dont really know where the nickname of the Pig comes from but it describes a trader who is not very sure about what hes gonna do next and the consensus among traders is that Bulls make money, Bears make money and Pigs get slaughtered.
: Have you ever heard the term pipette? Since brokers started to use 5 digit quotes more and more, the pipette is often confused with the pip. Instead the pip is the 4th
decimal in a quote while the pipette is the 5th
There you go friends, thats about all Ive got. Know more? Id love to hear it!
About the Author Rory McClellan
If reading all the above didnt bore you too much, heres a bit about me: my name is Rory McClellan and yea, Im Irish. I studied Psychology but my diploma is sitting quietly in a drawer so rest assured, I will not try to shrink your head. I like to think of myself as a trader who writes, not a writer who trades
simply because Ive been trading for longer than Ive been writing. When I trade, I trade Forex and when I write, I write for forexiswhyimbroke.com. There we try to show people that Forex deserves a second chance even if it got them broke or close to. More importantly, we try to show Forex Traders how to avoid going broke
in the first place, so pay us a visit.