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Forex history dates from the 1970s to the present day and has become the world's largest market with daily transaction volume of about $ 5.5 trillion.
Forex, known as the abbreviation of foreign exchange words, symbolizes the exchange of two currencies on its name. From the ancient times, people started to exchange goods for the first time in order to meet their needs. We can say that the first commercial transactions were started by exchanging the goods with the goods. Then, with the presence of the money, the goods were exchanged with the moneys rather than with the goods. Various methods and agreements were made in order to determine the value of money.
The first agreements to measure the value of the money and determine the standard are as follows.
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With the agreement made in 1944, the International Monetary Fund (IMF) was established.Under the auspices of the IMF, all currencies were indexed according to dollar. And the dolar too was indexed according to gold. According to the Bretton Woods system, 35 usd = 1 ounce gold was determined. According to the system that constituted the bases of Forex, the value of all the currencies of all countries emerged and the money was expressed in usd and gold.
It was signed in 1971. In this agreement, a plan was prepared to stabilize the fluctuations of European currencies among themselves. With this deal, the value of the US dollar was lowered, but after a while it was not enough but it was possible to devalue again and lose the value of the dollar by devaluation. However, because the speculative movements were intense, foreign exchange markets had to be closed down.
When the foreign exchange markets were reopened, the European and Japanese currencies were released against the dollar, and thus to the free exchange rate regime was started. In this way, the exchange rates have been determined by the market and have been liberalized.
Thanks to the liberalization of the market, investors started to exchange forex currency exchange. The exchange rates were presentation by the bank and many brokerage houses. Foreign exchange transactions are also carried out for the purpose of hedging other than for profit purposes. Many companies are saving their foreign exchange debts from the risks by this way. They open upside down positions to minimize the risks of exchange rates.
Forex is an important investment tool that people choose for many years as we have mentioned in history. It is going to seems to be prefer over the coming years because it has many features including enabling high profit rate, daily trading on weekdays, leverage and product diversity.
Click here to open an account and start forex trading immediately.
Forex, known as the abbreviation of foreign exchange words, symbolizes the exchange of two currencies on its name. From the ancient times, people started to exchange goods for the first time in order to meet their needs. We can say that the first commercial transactions were started by exchanging the goods with the goods. Then, with the presence of the money, the goods were exchanged with the moneys rather than with the goods. Various methods and agreements were made in order to determine the value of money.
The first agreements to measure the value of the money and determine the standard are as follows.
Bretton Woods Agreement;
With the agreement made in 1944, the International Monetary Fund (IMF) was established.Under the auspices of the IMF, all currencies were indexed according to dollar. And the dolar too was indexed according to gold. According to the Bretton Woods system, 35 usd = 1 ounce gold was determined. According to the system that constituted the bases of Forex, the value of all the currencies of all countries emerged and the money was expressed in usd and gold.
Smithsonian Agreement;
It was signed in 1971. In this agreement, a plan was prepared to stabilize the fluctuations of European currencies among themselves. With this deal, the value of the US dollar was lowered, but after a while it was not enough but it was possible to devalue again and lose the value of the dollar by devaluation. However, because the speculative movements were intense, foreign exchange markets had to be closed down.
When the foreign exchange markets were reopened, the European and Japanese currencies were released against the dollar, and thus to the free exchange rate regime was started. In this way, the exchange rates have been determined by the market and have been liberalized.
Thanks to the liberalization of the market, investors started to exchange forex currency exchange. The exchange rates were presentation by the bank and many brokerage houses. Foreign exchange transactions are also carried out for the purpose of hedging other than for profit purposes. Many companies are saving their foreign exchange debts from the risks by this way. They open upside down positions to minimize the risks of exchange rates.
Forex is an important investment tool that people choose for many years as we have mentioned in history. It is going to seems to be prefer over the coming years because it has many features including enabling high profit rate, daily trading on weekdays, leverage and product diversity.
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