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Why Forex?
History of Foreign Exchange
Foreign Exchange Basics
Frequently Asked Questions
4x Time Chart (Adobe pdf document)
HISTORY OF FOREIGN EXCHANGE
In a fashion, currency markets have been around since before the time of the pharaohs in Egypt . Even during the middle ages there were forms of currency trading going on. More recently, after WWII, the Bretton Woods Accord was established to help stabilize the global economy. During this time, speculation in the various national currencies began to destabilize the currency market. This accord limited the flow of currencies from one country to another and valued their currency to that of the U.S. Dollar. At this time, the U.S. Dollar was valued against a certain amount of gold and was called the "Gold Standard".
Shortly after this time, the currency market, as we currently know it, came about. The current "Free Floating System" opened the door for individuals to take advantage of trading in the foreign currency market. Now that the personal computer and internet are readily available to all, the foreign exchange markets have opened up, giving individual traders the opportunity to take advantage of currency trading.
Today, the Foreign Exchange market is the largest financial exchange in the world, trading between $1.9 and $2.5 trillion each day. This is 30 times more than all the volume in the U.S. markets combined. The forex market is not a market in the traditional sense, in that there are no physical exchange locations. Instead, the market is run electronically, within a network of banks that trade with each other.
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