History of FOREX

In the history of mankind, currency exchange, has always played a significant role. But only in the Middle Ages were established international banks that have adopted exchange financial capital. These documents were considered valid for submission to a third party, which will undoubtedly increase the flexibility and the number of cleared monetary instruments. It is born and the final formation of the market purchase - sale of currency. Exchange market has matured in its present form only in the twentieth century. Market currency trading qualifies periodically by successive phases of increasing the frequency and amplitude of the increase of price changes (volatility of exchange rates), as well as their relative stability. Up to the forties of last century was the base currency trading in London and the UK currency is the currency for the formation of foreign exchange reserves and settlements. As a result of World War II, the UK economy has suffered great damage.

One of the economically developed countries, which on the contrary even improved its economy, has been the United States of America. So in 1944 between the United States, France and Britain was signed Brett-Vudssky agreement under which United States dollar became the reserve currency for the major capitalist countries. Currency has been closely tied to U.S. currency (organized so-called corridors of currencies), and he was tied to the price of gold at the rate of 35 U.S. dollars per ounce of gold. The emergence of the Forex market in its present form was in the 70s of the 20th century, when they were introduced independently by changing exchange rates. This meant that now the currency of any country could carry out any operations of any person. Value of that currency at the moment is determined only by the current supply and demand in the currency market. Due to the introduction of a changing rate grew remarkably fast amount of currency trading in the Forex market. For information, turnover per day in 1977 was approximately $ 5 billion the United States, and in 1987 he had become approximately $ 600 billion in present daily volume of transactions in foreign exchange trading in the Forex market is estimated at 4-4.5 trillion dollars, which is comparable to the three annual budgets of the United States of America. The emergence of new technologies in the field of currency trading was reflected in the fact that organized the automated dealing systems and there was a transition to a virtual currency trading (Internet). Dealing centers in different countries have been combined into a single network, and electronic brokers in the Forex market have special electronic system. Current microprocessor technology, the development of new software, telecommunications, together with increased experience, resulted in significant improvement of the quality of the traders. It is characterized by their ability to trade profitably and reduce the risks of currency trading on Forex. Based on this improved markedly volume purchase - sale of currency on the forex market.