Forex history stems from a very ancient period. When traced, Forex trading begins commodities, such as gold, rice, and others. To own currency transactions, as now, the market has evolved.
Broadly speaking, the evolution of the Forex market to fast as it is today can be divided into four stages, namely:
1. Gold standard period, 1980 – 1914
2. The period during World War I, 1919 – 1939
3. Bretton Woods period, 1946 – 1971
4. Floating Exchange Rate Period, 1971 – Present.
But, in general, the evolution of the Forex market is divided into two stages, the stages Period Fixed Exchange Rate and Floating Rate Period.
Gold Standard Period Period Period Period World War I and Bretton Woods are included stage Fixed Rate Period.
At this stage, the transaction is not exciting because the Forex exchange rate changes can only occur in a relatively narrow range. Because of the exchange rate set by the state government (by agreement) with a certain amount of gold values.
After the Bretton Woods was the one, after the failure of the Fixed Rate Period in maintaining economic stability, Forex transactions began passionately.
This occurs because an assessment of inter-country exchange left entirely to the market mechanism. The market will determine whether the exchange rate is too high (over-valued) or too low (under-value).
At this time forex trading is very easy to do by anyone and from anywhere. With capital computer connected to the internet, you are able to do good business transaction forex trading from home, office, cafe, and where all that matters is the internet connection facilities.
Forex trading is the largest market in the world measured by total value of the transaction. With such large transactions daily volume reached $ 4 trillion per day, this course offers a huge advantage as well and is one of the exciting opportunity to earn income online.
Many people have made this as a major source of foreign exchange earnings. And it’s only natural because forex is a business that is very, very promising, origin is managed with a peaceful heart and a little knowledge of it will result in a very abundant profit.
Thus a brief history about Forex Trading. Hopefully can add insight in the world of trading.