The exchange of currencies began since the minting of coins by governments and of course was different from the form that is now, before that time was trade in minerals or exchange of goods for another and the trade of the metal is one of the most important economic means by countries. Because of the enormity of the metal market and the participation of governments in it, laws were passed that introduced traders in this market, which was the determinant of the causes of the American economic crisis in the 20 th and 30 th century. Some researchers say that the beginning of exchange in currencies dates back to the era of the Pharaohs and Babylonians in terms of its foundations and principles and it was spread among countries or tribes at the time. The currency exchange market or its trade has generally started since the man knew buying and selling.
In 1931 he was born in the Forex market or what is known today as Forex. In spite of these long years, FOREX still does not mean much to individuals in the world, especially to traders and businessmen, and they are ignorant of being part of the branch of the stock market trade in the global economy. The word "forex" refers to the foreign exchange market or the international exchange of foreign currencies, the abbreviation of the term "ForeignExchange Market", ie, the "market of foreign exchange," a market that extends throughout the world where the currencies are traded by several participants, such as International banks, international institutions, financial markets and individual traders.
In the wake of the Second World War in 1945, the Bretton Woods Agreement was concluded with the aim of achieving stability in international currencies and preventing the transfer of funds between countries. Where the participating countries pledged to try to maintain the value of their currencies by a limited margin against the dollar. It also set a price to evaluate the dollar compared to gold and prevented countries from devaluing their currencies to improve their positions by more than 10%. The agreement also fixed the prices of all national currencies against the dollar with a dollar price of 35 dollars per ounce. In 1876 gold was used to support each currency, thus preventing kings and rulers from devaluing their currencies arbitrarily and causing inflation to spread. Many institutions have this power as the US Federal Reserve system in the United States.
In 1971, the Bretton Woods agreement prevented speculation in the currency markets and the dollar could no longer be converted into gold. By 1973, major currencies had taken the industrialized countries to trade more freely, dominated mainly by supply and demand. Since then, international trade has expanded rapidly in the wake of the post-war reconstruction movement, which has led to massive capital movements. The exchange rates that the Bretton Woods Agreement had already worked to stabilize had been reduced.
The transfer of funds in the 1980s accelerated across the border with the emergence of the computer and the markets continued their continuity to expand the circulation of Asian, European and American markets. The major banks set up rooms to carry out deals, with hundreds of millions of dollars, the pound sterling, the franc, the yen and the euro trading hundreds of millions of dollars later in minutes. Today, online forex brokers are trading on a daily basis. In London, for example, individual trades worth millions of dollars are priced in seconds. The market has changed radically as most international financial transactions are held to buy and sell commodities, but to speculate in the market in order to make money with money.
Currency exchange or trading in the Forex market is through the sale or purchase of currency against another and the price varies between currencies on demand and in the Forex market is the exchange of currencies that hold the main share of operations, the US dollar (USD), the basic currency and the European euro ( EUR, GBP, CHF, JPY, AUD, CAD and other Arab and foreign currencies.
The Forex market plays a crucial role in helping international trade and investment. This market is characterized by large volumes of daily trading, and the possibility of trading open 24 hours a day except Saturday and Sunday. The Forex market is known to be the largest financial market in the world where more than $ 4 trillion is traded daily.