Making Money From Forex Market - Understand Its History To Predict The Future!
The Forex market is the largest liquid market in the entire world, with currencies amounting to about $ 1.
4 trillion traded daily.
The advancement of technology in telecommunications and banking has paved the way for a faster and more unpredictable foreign exchange market.
In earlier times, trade involved exchanging of goods to other goods, for example, spices to meat and cloth to jewelry.
The onset and availability of international transportation created a venue for international trade wherein vast amounts of goods and people were being shipped.
The end result of this transportation genius turned out to be a global economy that can no longer employ goods-to-goods trading because it is this makes fair trade highly unlikely, if not impossible.
Before World War I, gold and silver in the form of coins were already the most widely-used means of payment.
The trading practice was highly dependent on the gold reserve of different economies around the world.
As a result, governments and countries can easily change the value of their currency should a gold reserve be discovered.
The paper money soon became the primary representation of the gold reserve and stability of an economy.
The implementation of numerous foreign exchange agreements and policies, and the foundation of the IMF (International Monetary Fund), the World Bank, and GATT (General Agreement of Tariffs and Trade) in the 1940s allowed for a fairer and more stable global foreign exchange practices.
Today, these institutions are the responsible for the control of foreign exchange rates that are influenced heavily by the eight major currencies which are USD (US Dollar), EUR (Euro), GBP (British Pound), AUD (Australian Dollar), JPY (Japanese Yen), HKD (Hong Kong Dollar), and the CHF (Swiss franc).
4 trillion traded daily.
The advancement of technology in telecommunications and banking has paved the way for a faster and more unpredictable foreign exchange market.
In earlier times, trade involved exchanging of goods to other goods, for example, spices to meat and cloth to jewelry.
The onset and availability of international transportation created a venue for international trade wherein vast amounts of goods and people were being shipped.
The end result of this transportation genius turned out to be a global economy that can no longer employ goods-to-goods trading because it is this makes fair trade highly unlikely, if not impossible.
Before World War I, gold and silver in the form of coins were already the most widely-used means of payment.
The trading practice was highly dependent on the gold reserve of different economies around the world.
As a result, governments and countries can easily change the value of their currency should a gold reserve be discovered.
The paper money soon became the primary representation of the gold reserve and stability of an economy.
The implementation of numerous foreign exchange agreements and policies, and the foundation of the IMF (International Monetary Fund), the World Bank, and GATT (General Agreement of Tariffs and Trade) in the 1940s allowed for a fairer and more stable global foreign exchange practices.
Today, these institutions are the responsible for the control of foreign exchange rates that are influenced heavily by the eight major currencies which are USD (US Dollar), EUR (Euro), GBP (British Pound), AUD (Australian Dollar), JPY (Japanese Yen), HKD (Hong Kong Dollar), and the CHF (Swiss franc).
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