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Who created Forex?

The United States of America in 1944 took the lead in the establishment of the Forex market with the introduction of US Dollars as the new world's currency. Foreign exchange trading was once something that people only did when they needed foreign currency to use when traveling in other countries. It involved exchanging some of their local country's currency for another at a bank or foreign exchange broker, and they would receive their foreign currency at the current exchange rate offered by the bank or broker.



These days, when you hear someone refer to foreign exchange trading or Forex, they are usually referring to a type of investment trading that has now become common. It is now considered the most prominent financial market. Just like with trading stocks, Forex traders can speculate on the fluctuating values of currencies between two countries, and it's done for profit.



The "place" where currencies of different nations are traded is called the foreign exchange market. The Forex market doesn't have a central or physical location.



Instead, it is a decentralized market for trading various currencies. Computer networks help traders around the world trade currencies electronically, which means that the market is open 24 hours a day.



Who created Forex


Who invented Forex?


U.S. President, Richard Nixon is credited with ending the Bretton Woods Accord and fixed rates of exchange, eventually resulting in a free-floating currency system. After the Accord ended in 1971, the Smithsonian Agreement allowed rates to fluctuate by up to ±2%.




History of forex trading



The barter system is the oldest method of exchange and began in 6000BC, introduced by Mesopotamia tribes. Under the barter system goods were exchanged for other goods. The system then evolved and goods like salt and spices became popular mediums of exchange. Ships would sail to barter for these goods in the first ever form of foreign exchange. Eventually, as early as 6th century BC, the first gold coins were produced, and they acted as a currency because they had the critical characteristics like portability, durability, divisibility, uniformity, limited supply and acceptability.



Gold coins became widely accepted as a medium of exchange, but they were impractical because they were heavy. In the 1800s countries adopted the gold standard. The gold standard guaranteed that the government would redeem any amount of paper money for its value in gold. In February 1965 President Charles de Gaulle announced his intention to exchange its U.S. dollar reserves for gold at the official exchange rate. He sent the French Navy across the Atlantic to pick up the French reserve of gold and was followed by several countries. As it resulted in considerably reducing U.S. gold stock and U.S. economic influence, it led U.S. President Richard Nixon to end unilaterally the convertibility of the dollar to gold on August 15, 1971 (the "Nixon Shock"). This was meant to be a temporary measure but the dollar became permanently a floating fiat money and in October 1976, the U.S. government officially changed the definition of the dollar; references to gold were removed from statutes.


At first, it was difficult to determine fair exchange rates, but advances in technology and communication eventually made things easier.






Who invented Forex?


U.S. President, Richard Nixon is credited with ending the Bretton Woods Accord and fixed rates of exchange, eventually resulting in a free-floating currency system. After the Accord ended in 1971, the Smithsonian Agreement allowed rates to fluctuate by up to ±2%.




History of forex trading


Forex trading started during the time of the Babylonians. This system was designed for the currencies and exchange. In the early times, the goods are being traded for another tangible item. When the metal age began, gold and silver became the tool of transaction...



Who controls the forex market?


The Forex market is decentralized, so is not under the control of anybody. However, there are four large banks which make the biggest markets in Forex and so are very influential in the market: JPMorgan, Citi, Deutsche Bank and UBS.



What is traded on forex?


Currencies are traded in Forex, primarily the U.S. Dollar, the Euro, and the Japanese Yen, as well as dozens of other smaller currencies. Many Forex brokers also offer trading in CFDs based on stock indices, commodities, and even individual shares.



Can you get rich by trading forex?


It is possible to get rich by trading Forex if you do it well, but evidence published by Forex brokers shows that more than 70% of Forex traders lose money rather than profit.