Forex history through the ages

In fact, the Forex market for currency trading is the talk of evolution, it has crystallized in its current form since the seventies of the last century, but trading overall evolution with the evolution of social life in human history, and in this article we will talk about the history of Forex and how its evolution with time until the present time.

Forex

 The history of trading with the history of the existence of human social on the ground, where he is the exchange of goods commodities, before the emergence of money and when it appeared the money began trading goods with cash, with the development of different currencies emerged a new problem lies in knowing the value of a particular currency against another currency, has expanded this the problem significantly, especially in the modern era after the development of transportation and became trade is across the continents, and to solve this problem reach the world to the Bretton Woods Agreement after World War II, where it was installed dollar coin weighing certain of gold, which has been dating him on it dollar Golden, has been installed all other currencies fixed exchange rate against the dollar golden, but in 1971 collapsed the Treaty of Bretton Woods was sentenced to exchange rates to float, any move up and down depending on demand and supply in the market and here began to impact the economy and clear on the price, became Currency moving and but simple بأعشار, and there was no one can take advantage of these moves, but owners of capital so huge because they feel these moves because of the strength of their investments. The problem has been resolved this later when established companies middlemen who made it possible opportunity to small owners of capital investment in the currency trading market, by providing them with financial cranes, these cranes that increase the weight of the simple capital, and increase vulnerability to movements.

That the financial jacks in the forex market is a double-edged sword Reducing first lies in the possibility of making a profit and plenty of simple movements in prices, while the second limit lies in the possibility to get in heavy losses due to price movement. There are several financial levers of 1:50, 1:100, 1:200, 1:300, 1:400 any investment thousand dollars Awstkhaddamk to 1:100 crane will make a $ 100,000 investment then, any simple movement in prices may lead to you big profits or losses. So be careful when you use that leverage.

Leverage

But without leverage will not find the feasibility of investment in the forex market, because the return on capital will be a few dollars while the use of the crane maximize return on capital exponentially. So you have to use levers, but with caution.

However crystallized Forex in its current form began owners minds to study this trade, trying with all their best to find a way or method or tool to help them predict the movements of currency rates, they tried to integrate the movements of prices with the theories of physics and other sciences Other, the Fibonacci theory, Gan, and other Other theories that have been used to study the currency rates.

And this is only the tip of the iceberg in the world of Forex and you can learn more