History Of Forex Trading

History Of Forex Trading. Forex history begins from the time immemorial. When traced, forex transactions commenced from trading commodities, such as gold, rice, and others. For currency transactions itself as now, the market has experienced an evolution.

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Read also: Know The Basics Of Forex Trading

Broadly speaking, the evolution of the forex market to rapidly as it is now can be divided into 4 stages, namely:

1. Period of the gold standard, 1980-1914
2. The period during World War I, the 1919-1939
3. Bretton Woods Period, 1946-1971
4. Period of Floating exchange rates, 1971-present.

But, broadly speaking, the evolution of the forex market is divided into 2 phases i.e. phase period of fixed exchange rate and a floating exchange rate Period. Period of the gold standard, the period during World War I and the Bretton Woods Period is inclusive of the period of fixed exchange rate. At this stage, no exciting forex transactions due to changes in exchange rates can only occur in a relatively narrow range. Therefore, the exchange rate was fixed by the State Government (upon agreement) with a certain value of gold.

After the time of Bretton Woods was the one, after the failure of the fixed exchange rate Period in maintaining economic stability, forex transactions began to passionately. This happened because judgment against exchange rates between countries handed over entirely to the market mechanism. The market will determine whether Exchange rates were too expensive (over-valued) or too low (under-value).

At the time of this forex trading is very easy to do by anyone from anywhere. With a capital of computers that are connected to the internet, you can already do a good forex trading trsansaksi business from home, Office, cafe, and from anywhere there is an important internet connection facilities.

Forex trading is the world's largest market measured by the total value of the transaction. With such great deals daily volume reached $ 4 trillion per day, this certainly offers huge advantages anyway and one of the exciting opportunity to earn an income online.

Many people have made this as the main source of foreign exchange earnings. And it's only reasonable because forex is a business that is very-very promising, the origin in the manage with heart and a bit of knowledge then it will generate a very large profit.

Thus a brief history about forex trading. Hopefully be able to add your insight in the world of trading.

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