Fundamentals of Market

Forex Basics, this section, without which the novice trader, it will be very difficult to move on. Not knowing the highlights of the formation and development of the Forex market would be virtually impossible to understand it more complex mechanisms. Only by relying on these basics of the Forex market, the beginner trader can move on.
During the inception of the Forex market, the price of goods was expressed in the prescribed quantity of other goods, there was a kind of exchange between all market participants.
Money used from the time of the pharaohs, but then they were in various forms. For example, in Babylon at the time, began to use paper money and checks, but still the merchants in the Middle East were the first who began to trade currencies, changing the coins of one country to another coin. Already since the Middle Ages it became necessary to use other forms of money, not just coins.

International foreign exchange market Forex, acquired its present form in 1973. The following procedure for the formation of the market:

• In 1944 - adopted Bretton - Woods Agreement, which aimed at stabilizing the global economy after World War II. From this date begins the story of the forex market.

• In 1971 - Smithsonian Agreement adopted in order to reduce currency fluctuations.
• In 1972 - adopted the European Agreement on a joint voyage of exchange rates, whose goal was to obtain independence from the U.S. dollar.
• In 1973 - abolition of the Smithsonian and the European Agreement on a joint voyage of exchange rates, and this was confirmed by the need to move to a regime of free foreign currency exchange rate.
• In 1978 - European Monetary System was introduced to other countries, as was made final attempt to obtain independence from the U.S. dollar.
• In 1978 - the International Monetary Fund formally moved to a regime of free exchange rate.
• In 1993 - European Monetary System is recognized as wrong and the currency exchange rate regime of free and began to rapidly cover the whole world.
• From the very beginning of its inception in the Middle East, until the First World War, the foreign exchange market was quite stable. But after the First World War, the foreign exchange market has changed and the activity of speculators has increased many times, that is quite alarmed the public.
• In 1931 - came a lull in the market, thanks to the World Depression and the suspension of the gold standard. In the period from 1931 to 1973, the foreign exchange market has seen many changes, which were later positively influenced the international economy, and therefore, the level of speculation has been noticeably reduced.

It is believed that the daily turnover on the Forex market was as follows:

• 1977 - $ 5 billion
• 1987 - $ 600 billion
• at the end of 1992 - $ 1 trillion
• 1997 - 1.2 trillion dollars
• 2000 - 1.5 trillion dollars
• 2005-2006, the total volume of daily turnover on the Forex market fluctuated, according to various estimates, from 2 to 4 trillion. of dollars.
•  2010 - $ 4 trillion. At the same time a further increase in daily turnover to $ 10 trillion in 2020.
  
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P.S. Individuals who work through brokers in the Forex market is at risk. And the reason is not so much cheating brokers as an intrinsic property of the forex market.