Stages of development of the foreign exchange market

Historians believe that the first metal money (coins) were created in Ancient Egypt, and in the Middle ages money exchanged everywhere, moneylenders flourished, etc. the Development of Maritime, international trade and the desire to earn more stimulated activity italic changed. As you can see, currency speculation were already quite popular. Gradually foreign exchange market began to acquire more clearer. Today, the Internet has brought the process of exchanging money at a qualitatively new level, allowing you to trade from home or office.

The development of the foreign exchange market - the starting point

Initially, exchange rates were fixed: per dollar you can buy a certain number of yuan, etc. Later, the rate of each currency was determined in a certain amount of gold, that is, provided the gold reserve of the country. Later, the world economy has shifted to a floating exchange rate, which allowed traders (traders, currency speculators) to make a difference.

Traditionally, the date of “birth” currency exchange believes 1971, when they were abolished fixed exchange rates in different countries (States). Formed Forex (Foreign Exchange market, i.e. the foreign exchange market, where money you could earn by buying the currency cheaper and selling it after appreciation.

Later, some of the financiers of major countries attempted resuscitation of the previous system with fixed odds, but to no avail. Over the next 10-20 years, the Forex exchange has increased significantly, increased trading volumes (and continues to build) and have been transformed through technology, primarily the Internet.
By the way, instead of EUR previously used by the German brand.

The realities of Forex today

Per day in the Forex market turns more than 4-5 trillion US dollars. In this market speculating large funds, banks, investors, as well as many private traders with small accounts (up to 10 000$). A group of private traders is the most numerous, but at the same time has a minimal impact on the market due to the fact that operates in small amounts in comparison with any major Bank, for example.

Goals of the players (market participants) may vary. If the Bank just wants to swap the dollar to the Euro or British pound to Swiss franc, the private trader is primarily intended to profit from the exchange.

Banks and funds have their own analytical departments whose duties include analysis of current market conditions and favorable currency exchange.

Prospects of development of the foreign exchange market

The profession of currency trading is becoming more popular. Every day more and more people of different age, sex and occupation wants to learn how to earn money with your own mind. New profession allows you to do it in the shortest possible time. Yes, first you have to give all your best, learning new skills and practicing on demo and cent accounts. But the invested time and effort pays off at times - as soon as you get your first profits, you will see that all real trading will be much easier. People are tired of chiefs, reporting, and low salaries. They want to get a decent profit, sitting at home or in the office in a convenient time.

The down side is passion, greed and unwillingness to consistently learn. Many of them lack banal persistence in learning, so they leave trading after the first failures. But those who set a goal and moving towards it, sooner or later it reached.

Today in Forex, you can trade not only currency, but gold, silver, futures contracts on some of the assets, etc. More opportunities

We also encourage you to open accounts from reliable brokers who have a good reputation in the network (Forex4you, Alpari and InstaForex). Each specified broker conducts online training and provides the correct trader information, so to make their first steps in trading is simple.

Learn to make your mind, and you will ensure a stable and high income in the future!