Forex trading started during the time of the Babylonians. This system was designed for the currencies and exchange. In the early times, the goods are being traded for another tangible item. When the metal age began, gold and silver became the tool of transaction. This idea became popular during that age.
The creation of coins started then as well as the political regimes. When gold became an important trading tool, its use became restricted; therefore; the result which has been brought about by this is that the value of money has diminished.
A great panic happened then because people would like to exchange the value of their money for gold. In 1931, the gold standard was removed and the FOREX market was born; although people used to have a very small or no notion at all about it.
Foreign exchange was introduced so citizens will have more monetary stableness and reliability. Through the initiative of the USA in July 1944, the new world’s currency was initiated with the use of the US Dollar. During those times, IMF, World Bank and GATT were formed and agreed upon at Bretton Woods. The agreement was comprised of the Gold Standard which will be equal to $35.00 per ounce. Other currencies were also fixed with this standard. The reason for this is to avoid destabilizing the monetary crisis.
When did forex trading began?
Modern Forex trading began in the early 1970s when the U.S.A. allowed its currency to float freely in the Forex market. However, Forex trading has been around as long as has international commerce.
Can you get rich by trading forex?
It is possible to get rich by trading Forex if you do it well, but evidence published by Forex brokers shows that more than 70% of Forex traders lose money rather than profit.
What is traded on forex?
Currencies are traded in Forex, primarily the U.S. Dollar, the Euro, and the Japanese Yen, as well as dozens of other smaller currencies. Many Forex brokers also offer trading in CFDs based on stock indices, commodities, and even individual shares.
Who controls the forex market?
The Forex market is decentralized, so is not under the control of any body. However, there are four large banks which make the biggest markets in Forex and so are very influential in the market: JPMorgan, Citi, Deutsche Bank and UBS.