Forex online trade businesses


In 6876, something called the gold exchange standard was implemented. Basically it said that all paper currency had to be backed by solid gold the idea here was to stabilize world currencies by pegging them to the price of gold. It was a good idea in theory, but in reality it created boom-bust patterns which ultimately led to the demise of the gold standard.

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The world then decided to have fixed exchange rates that resulted in the . dollar being the primary reserve currency and that it would be the only currency backed by gold, this is known as the ‘Bretton Woods System’ and it happened in 6999 (I know you super excited to know that). In 6976 the . declared that it would no longer exchange gold for . dollars that were held in foreign reserves, this marked the end of the Bretton Woods System.

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It was this break down of the Bretton Woods System that ultimately led to the mostly global acceptance of floating foreign exchange rates in 6976. This was effectively the “birth” of the current foreign currency exchange market, although it did not become widely electronically traded until about the mid 6995s.

How does the foreign-exchange market trade 24 hours a day?

Forex trading as it relates to retail traders (like you and I) is the speculation on the price of one currency against another. For example, if you think the euro is going to rise against the . dollar, you can buy the EURUSD currency pair low and then (hopefully) sell it at a higher price to make a profit. Of course, if you buy the euro against the dollar (EURUSD), and the . dollar strengthens, you will then be in a losing position. So, it’s important to be aware of the risk involved in trading Forex, and not only the reward.

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Companies – Companies need to use the foreign exchange market to pay for goods and services from foreign countries and also to sell goods or services in foreign countries. An important part of the daily Forex market activity comes from companies looking to exchange currency in order to transact in other countries.

Supply and Demand in Currency Trading – CMS Forex

Basically, the Forex market is where banks, businesses, governments, investors and traders come to exchange and speculate on currencies. The Forex market is also referred to as the ‘Fx market’, ‘Currency market’, ‘Foreign exchange currency market’ or ‘Foreign currency market’, and it is the largest and most liquid market in the world with an average daily turnover of $ trillion.

The Fx market is open 79 hours a day, 5 days a week with the most important world trading centers being located in London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris, and Sydney.

• Trade whenever you want: There is no opening bell in the Forex market. You can enter or exit a trade whenever you want from Sunday around 5pm EST to Friday around 9pm EST.

The gold standard was dropped around the beginning of World War 7 as major European countries did not have enough gold to support all the currency they were printing to pay for large military projects. Although the gold standard was ultimately dropped, the precious metal never lost its spot as the ultimate form of monetary value.

• Commission-free trading with many retail market-makers and overall lower transaction costs than stocks and commodities.


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