We begin with an introduction to Forex trading and the world of the global Forex market. It is important to try to understand the basics from the beginning so the aspiring trader can answer the question "What is Forex?" beyond simple currency exchange.
In this introductory lesson, we will bring you into the world of Forex trading, the foreign exchange markets and what trading Forex is really all about.
ADDITIONAL READING ABOUT WHAT IS FOREX TRADING
Any introduction to Forex trading must contain a bit of history.
The creation of the gold standard monetary system in 1875 was extremely significant in the history of the Forex currency market. Countries attached an amount of their currency to be equal to an ounce of gold; the changing price of gold between two currencies became the first standardized means of currency exchange in history.
The gold standard broke down in World War I because the major European powers did not have enough gold to exchange for all the currency that the governments were printing off at the time in order to complete large military projects. The gold standard began anew between the wars, but it was dropped again by the start of WWII. Gold never lost its spot as the ultimate form of monetary value.
1944 saw the implementation of the Bretton Woods System which led to the formation of fixed exchange rates resulting in the U.S. dollar replacing the gold standard as the reserve currency. Thus, the U.S. dollar became the only currency that would be backed by gold. 1971 marked the end of this system when U.S. declared that it would no longer exchange gold for U.S. dollars that were held in foreign reserves. This led to the almost global acceptance of floating foreign exchange rates in 1976 effectively producing the current foreign currency exchange. It became electronically traded only in the mid-1990s.
03 Comments
Truly a great course. As a novice to trading, the educational support is phenomenal and of a high standard. Great to see a training path forward with the tools and resources availabble on the OTA platform as well as the incredible support from fellow students and instructors - Digby (UK)”
“Hi, my name is J. Del Rio. This class alone gave me great insight into what to expect of the trading business. I am now very eager to take my next course and see what more I can learn to become a successful trader.”
“I have taken the FOREX class twice and am at least at a point where I feel I can now go live with an account. I have a ways to go but am confident, due to the teaching process that my goals are attainable.”