Forex or foreign exchange is a currency exchange is usually performed because of the business relationship between the parties to the other party . There are several agencies that undertake this activity as an example:
1 . Bank .
2 . Businesspersons export / import .
3 . Speculators .
4 . Foreign investors .
They have different interests , the Bank typically trade in the forex market but to also take advantage of the currency in order to maintain the high or not too fall with other currencies in the world . Businesspersons export / import is usually because every buy / import a course embelianya must use the applicable currency in the country and vice versa . Speculators are usually aimed specifically take the difference in price or as investment . As for the foreign investors they need a clear berlau currency in which they were investing .
History of Forex has started some time after the money is known as a means of exchange and payment transactions are legitimate , replacing the barter system in the world trade .
Trade widespread at the time, which is not only happening in one country ( local ) but also globally , poses a problem because each currency does not have the same value to each other .
With the differences and the need for the exchange rate , leads to the creation of supply and demand setting rules against some currencies . so that there was a foreign exchange market with the established standards .
When traced , Forex transactions stems from trade commodities, such as gold , rice , and others . For currency transaction itself , as now, the market has evolved .
Broadly speaking , the rapid evolution of the Forex market to what it is today can be divided into four stages , namely :
1 . Gold standard period , 1980 - 1914
2 . Period of World War I , 1919 - 1939
3 . Bretton Woods period , 1946 - 1971
4 . Floating Exchange Rate Period , 1971 - Now .
Evolution of the Forex market is divided into two phases: Period Exchange Rate Fixed and Floating Exchange Rate Period . Gold Standard Period Period Period Period World War I and the Bretton Woods period is included stage of Fixed Exchange Rates . At this stage , the transaction is not exciting because the Forex exchange rate changes can only occur in a relatively narrow range . Therefore, 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 ranging excited . This occurs because the assessment of inter - country exchange rate 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 a capital computer connected to the internet , anyone can do trsansaksi good forex trading business from home , office , cafe , and from anywhere as long as it has an internet connection .
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 currently , it can certainly provide the potential for greater profits and is one of the exciting opportunity to earn income online .
There have been many people make this as a major source of foreign exchange earnings . Naturally, because forex is a business that is very promising , provided that organized and managed with a calm spirit , and a bit of knowledge to understand .
Such is a brief history of the Historical Origins of Forex Trading , hopefully can add insight and knowledge in the world of trading . For you who want or already entering the
world of Forex , we pray for good luck and keep the profit . :)