Introduction
Foreign Exchange or Forex is a global market used for exchanging currencies of different countries. The Forex market has grown in size and become more accessible. It has captured the attention of millions. With the advancement in technology and communication science, Forex has become a huge global market. But it is just beginning. Still more has to come. The new generation of traders and investors is seeking exciting opportunities in Forex.
Forex – a force behind the wave of Globalization
Forex is the driving force to promote globalization. One can see globalization and trading activities in all major cities of the world. London, New York and Tokyo are the major hubs of Forex trading. With Forex one can go everywhere and buy any thing with the dollars in the Pocket. Dollar is global currency. Travelers prefer to exchange their money for dollars. The rise and fall of the market affect the whole world. It is great when the market shows a certain tendency that benefits the investors.
History of Forex
Forex trading may seems new and complex to most of the people but very little of Forex trading is different from the trade done in earlier history of mankind. The methods and techniques have changed but not the basic concept of the simple exchange of assets or money. The roots of Forex trading can be traced in ancient times when man employed all the skills and resources to use money and markets for his benefits. Our ancestors had their own strategies and methods. Their strategies may have resulted in success or failures but all those strategies and methods can be used as historical record to understand the modern Forex trading. Forex trading is a result of human experience and learning.
The nullification of Bretton Woods Agreement in 1971 was the major event in the history of Forex trading. The US Dollar is not convertible into gold after this. This freed the currencies of industrialized nations from the control of supply and demand forces. In 80’s, global economic activities accelerated with the induction of latest information technology. Internet and computers have revolutionized the whole foreign exchange trades. An immense advancement has been made during last two decades. The turn over on foreign exchange was more than $3.5 trillion a day in the year 2008.
How to stay in Forex Trade?
A well thought out strategy or plan is must to stay in the business. A plan provides the ability to counter the different situations. It enables you to foresee the market trends and adjust accordingly. The seasoned forex traders always keep account of their trading strategy before investing. They do their objective analysis before going to invest in Forex market. Strategy and Analysis is real difference between the profit grabbers and the losers.