History of forex

Let’s look at a little forex trading history through the ages. Although
currency, mostly paper certificates, has been around in one form or
another since the days of Babylon, the usage of coins as a form of
currency was begun in the Middle East. Not much was going on in the
foreign exchange markets between those days and World War I. This all
changed, however, after World War I, when there was an exceptional
increase in speculation in the market. However, following the great
depression in 1931 there was a tremendous slowdown in forex trading.
From that year until 1973, there was little or no interest in that market.

Since 1973, supply and demand has caused a great increase in the
interest due to many industrialized nations currencies freely flowing.
Speed of information and price volatility increased throughout the
1970’s. The trading volume on the forex market has increased from 10
billion a day to 2 trillion a day in a mere 40 years, and , today, has
become one of the most dynamic markets of its kind.

Where it is Now:

A great number of day traders had previously traded primarily in stocks
and futures. But the forex trading market has become more liquid and
offers greater opportunity for fast paced trading and the flexibility of
round-the-clock trading, five days a week, 24 hours a day in the US,
Europe and Asia. This allows for quick response to news from other parts
of the world, no matter what your location. forex trading is very popular
with speculators. Those interested may trade in both a Bear and a Bull

Those choosing to trade in the forex market have the convenience of
access to online, real time, quotes. There is also a global indices chart.
Online, there is also a global foreign exchange update daily posted by the
Bank of Nova Scotia. Having access to so much information and market
commentary is a great boon for dedicated forex investors. However, the
forex trading market is not for everyone. It is complicated and there is
potential for great losses without having the education to make informed
decisions in your trades.

Make Sound Choices:

Regardless of the investing vehicle you decide to pursue, keep a sensible
amount of capital intact liquid, particularly in this difficult economic crisis.
Building a nest egg will be much harder in the years ahead, which
implies caution in how and with whom you invest. More important in
these times, is not so much to produce additional wealth, as it is to hold
onto what you now have left, in anticipation of worse conditions ahead.
It’s better to be safe than sorry. If you are interested in learning how to
trade forex then take a look at cmc markets which is a great source for
learning and practicing. The history of forex trading is lengthy and has
been lucrative. However, it is risky, so proceed with caution.

During the beginning of World War I, the gold standard broke down
resulting from the political tension resulting from Germany’s aggression.
The European powers felt a need to large military projects and the
financial impact of these projects was so widely felt in their economies
that their gold reserves wasn’t enough to cover the currencies that were
being printed. The gold standard staged a slight comeback between the
two World Wars but by the start of World War II, most countries had
completely dropped utilizing it as a means of backing their currencies.
However, gold has never ceased to be the ultimate form of monetary

Just before the end of the Second World War, the Allied nations surmised
that they would need to set up some sort of monetary system that would
fill the void left from the demise of the gold standard. Over 700 delegates
worldwide formulated the Bretton Woods System (named after the New
Hampshire location where the gathering was held) in July of 1944. What
resulted was the formation of the following:

1. a method for fixing exchange rates with the different currencies of the

2. the US dollar replaced the gold standard as the primary reserve

3. the creation of the General Agreement for Tariffs and Trade (GA’I’I’),
the International Bank for Reconstruction and Development, and the
International Monetary Fund (IMF) to oversee global economic activities

But as history has demonstrated, this too would come to pass primarily
due to the fact that for nearly 30 years after the creation of the Bretton
Woods System, the US had to run numerous balances of payment deficits
in order to continue being the global currency reserve. At the outset of
the 1970’s, the US gold reserves were so depleted that the US Treasury
could no longer cover all the US dollars that foreign banks held as
reserves and on August 15th, 1971 that the gold reserve window was
officially closed.

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