Trading manual part 1 Forex History

Don´t fall for the pirates! Check out our agent scam list: Choose the best broker! Check out our top 5 broker reviews: Best Agents to invest This is the first part of a series of articles we're going to publish about crypto and forex trading. With this we'll help our followers get a deeper understanding about the functionalities and of the crypto and forex trading. We'll be releasing a part by part a complete guide of trading for everybody to follow. This way newcomers an veterans of the trading world will be able to comprehend the the secret of the trading world. Hope you all enjoy this manual and don´t hesitate in leaving your remarks in addition to queries on the bottom of the page.

Trading manual part 1: Forex History

It's necessary to learn some of the historic events who relate to currencies and the exchange of them. We will go through the global monetary system and how it became what it is nowadays.   So, it basically started with the Gold Standard System. The invention of the gold standard monetary system in 1875 is among the most important events in the history of the currency market. Before the gold standard system was made, countries were commonly using silver and gold as a method of international   payments. The major issue about that was the fact that the purchase price of these materials is dependent upon supply and demand. By way of instance, when a new gold mine was discovered the prices usually went down.   The fundamental idea behind the gold standard was that authorities guaranteed the conversion of money into a specific amount of gold. Ln other words, a currency had back-up from gold. Obviously, governments needed a rather substantial gold reserve   in order to meet up with the demand for money exchanges.

The late 19" century

Stay tuned for the release of  part 2 very soon! Prior to the end of World War two, the allied states felt the need to prepare a financial  system so as to fill the void that was left when the gold standard system was abandoned. In July 1944, more than 700 representatives from the Allies met in Bretton Woods, New Hampshire, to deliberate over what could be known as the Bretton Woods System. Throughout the late 19"' century, all   major economic countries had pegged an amount of money to an ounce of gold.   Over time, the difference in price of an ounce of gold between two currencies became the market rate for those two currencies. This represented the first official way of currency exchange in history.   The gold standard finally broke down during the beginning of World War 1. Due into the political tension with Germany, the leading European powers felt a need to complete large military projects, so they began printing more money to help pay for   those projects. The financial burden of these projects was so substantial that there was not enough gold in the time to exchange for all of the currency the governments were printing off. 

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