Forex Investment History

In the forex market (FX) mainly in the trading process on the currency of one country, that of another. On the world market with hundreds of currencies in use, it is necessary process if international trade will occur. International exchange rates is that determines the value of the currency country over another. Open trade currencies in the foreign exchange market creates a market value of currency fluctuations. The concept of forex (foreign exchange ) was approximately as long as trade between countries with different currencies was transpiring. The currency has been documented as far back as biblical times, but Julian Walmsley, author of "Currency Market Money Markets and leadership, argues that foreign currency, as we know it today, actually not develop until 1800, when the cable transmission took place between the cities of London and New York. From a historical point of view, to improve trade in the country, the position of the Government tried to create exchange rates individually. When the country set their exchange rates lower than rates in other countries, it does so in order to improve its trade position. It will make its exports more affordable, but at the same time make it imports from other countries, less affordable. Trade wars were often the result of this practice, as a result of other countries to fight for better trade position. Most large countries were allowed to "float" their currencies --- a method that allows the country in exchange rates to be determined by economic and demand factors within the various foreign exchange markets. Floating currencies were allowed, since the early 1970's, so this is not the last term in the currency market. Buying and selling foreign exchange reserves allows countries to adjust their fine exchange rates, saving foreign exchange reserves or gold in central banks. Market Composition There are hunders of businesses and governments around the world that buy, sell, and trade various currencies. Nevertheless, currency markets are decentralized. So quickly, falling or volatile prices could create economic destruction and even death of the country's economy, most governments interest that make bets on the currency market. When the government takes part in the purchase, sale, trade or foreign currencies is mainly trying to influence the exchange rate of its currency. It also gives the country an opportunity to intervene in the foreign market through open market operations. Other participants are the foreign exchange market, commercial banks, foreign exchange brokers, and portfolio managers. Currencies considered as a tool for investment in these financial institutions. Sometimes, instead of selling in overseas concerns, they will sell their own clients, such as exporters, importers, or multinational companies that require the removal of currency to the exploitation of their enterprises. Commercial banks are typically more users exchange market, often serving as an intermediary between buyer and seller of foreign currency