FOREX TRADING SUMMARY

-  Forex is an over the counter (OTC) market supported by forex dealers serving as market dealers


-  Eurodollars are U.S Funds held in banks outside the regulatory control of the U.S Governments


-  The earliest form of currency was mostly for the facilitation of international commerce


-  In recent years, a large secondary forex market has evolved, resulting in a network of online brokers offering direct form of currency trading services through online trading platforms.


-  In 1971, the U.S President Richard Nixon eliminated the Gold standard for the U.S dollar to combat rising gold prices contributing to high inflation levels. This action led directly to free floating currency exchange rates and gave rise to the modern currency OTC markets


-The Bretton Woods Accord of 1941 was a major international policy with intentions to minimize economic chaos with the conclussion of World War 2. I involves pegging currencies to the U.S dollars which was it self pegged with the price of gold.


-  Forex trading is managed through an established interbank market, and only large financial institutions are able to deal directly in this market

INTRODUCTION TO THE FOREX MARKET...

INTRODUCTION TO THE CURRENCY MARKET..

In order to exchange yen for pounds, the actual transaction to meet this criteria is to buy GBP/JPY currency pair. in the following example GBP is the ISO code for Great Britian Pounds while JPY is the ISO code for Japanese Yen.

BRIEF HISTORY...

Until the late 1970s, currency trading was limited to large companies, conducting business in multiple countries..

Trading for Investment purposes and Speculative purposes was not widely in practise at this time, amd most trading was more focused on Commodities and individual stocks. But all thanks to the brokers who made it easy to make profit from speculations....

WHAT IS SPECULATION?  It simply means profiting from fluctuation in prices for currencies and other investment securities...