Do you know that the Forex market never sleeps?
It performs trillion of business, but the Forex market does not earn this place in one day. This market struggled for many years before coming to this point. A large number of traders trade in Forex to perform trading. Here is a brief history of Forex trading and how it got started.
The Forex market’s history:
How it started:
The concept of trading currencies is not new. According to the evidence, the exchange of currency started at 259BC in the ancient times of Egypt. But after a long time, the currencies were traded through banks. As a textile merchant in the 15th century, the Medici family invested in an international bank.
The Forex market was established in the 17th and 18th century when England and Holland performed exchanges of currencies. However, according to various websites, the next major event in the Forex market will take place on November 19th.
Progress in Forex:
In 1850, Alexender Brown and Sons began trading and became the leading traders in the Forex market. Other strong participants also entered this market in the late 1880s. The gold standard monetary system was created in 1870. This gives the Forex market a new lease on life. It is one of the biggest events in the Forex market. International trade was not demanding before the first war, so many countries left the gold standard.
1900-1915 Golden days:
The Forex market rose between 1900 and 1915, and the home prices increased by 11%, while the gold standard increased by more than 6%, which is a great improvement in the Forex market.
But the forex market came down in 1913 when most of the exchange was conducted in British Pound. There were only two brokers that were in London. But other brokers were working in New York, Berlin, and Paris. In 1928, the exchange of currency was an important part of financial functioning in London, and foreign exchange was considered a part of modern status.
Agreements of Forex:
The Bretton Woods Accord was agreed in 1944 in which the value of currencies could fluctuate by 1% as compared to the actual value of the currency. But this agreement could not be sustained during the period of Nixon and a fixed rate of exchange was agreed that resulted in a free floating system of currencies. The European joint float and the Bretton Woods agreement both failed miserably, and the Forex market remained closed between 1972 and 1972.
In 1973, the modern Forex market was started, and there was no control of foreign exchange, as a result of which, a free and floating market started. In 1972, a scientist named Reuters introduced a desktop monitor that replaced the method of trading. Now trading can be done through computers instead of telephones.
The internet’s availability also increases the business of Forex. Xm broker was established at that time. Now, the Forex market is the world’s largest, transacting trillions of dollars every day.
The journey of Forex is not as easy as it seems now. Forex also faces many ups and downs, but with consistency and hard work, it comes to the point where everyone wants to invest in the world’s largest market.