Foreign trade exchange has been around for a long time but was impacted in 1944 when the Bretton Woods Agreement established the US dollar and fixed it against gold. The value of the dollare 35USD per ounce of gold and all other national currencies were based on the US dollar. The purpose of the Bretton Woods agreement was to establish certain international monetary stability and prevent money from being taken out of one country and into another. This agreement was implemented after world War II, and was made to regulate the international Forex market. Countries tried to keep the value of their currency equivalent within a certain limit to the dollar and to the rate of gold as needed. It was because of this agreement that the dollar became a leading contender and it was used as a reference in fluctuations of other currencies. This also reflected the global economic dominance that the United States now held. At this time countries were not allowed to devalue their currency in order to benefit foreign trade and the fluctuation of currencies could not go under 10%.
Forex Trade Since 1971
In 1971 the Bretton Woods agreement was abandoned as the US dollar could no longer be exchanged into gold, and it was here that the market of supply and demand began to control the foreign currencies.Prices would fluctuate on a daily basis with prices changing at a constant speed and new financial tools, and market deregulations were introduced. When computers came into the financial world in the 80's then there became an even more increased trade in Foreign Exchange including curencies from Asia, Europe and the Americas. The trading increased from $70 billion a day in the early 80's to $1.5 trillion dollars a day today, and all thanks to the ability of online trading.
Today Making Money with Forex Trading is for Everyone
Today anyone can make a nice profit from Forex trading. Forex trading involves changing an investment from one currency to another, and many of these are the strongest currencies in the world, including the Dollar, the British Pound, the Euro, the Swiss Franc, the Yen and others. When you trade you want to buy a currency that is at a lower exchange rate and later exchange it for a currency that is at a higher exchange rate. When doing this there are several factors you will need to look at as these determine the strength or the weakness of a currency. Factors that determine this strenght or weakness are economic growth, decline, employment rates, export of products, etc. To be successful at Forex trading you must learn to watch for these economical developments around the world.
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