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Forex trading basics: An over the counter market where buyers and sellers manner foreign exchange transactions. The Forex market is useful because it helps enable trade and transactions between countries, and it also allows an investment opportunity for risk looking for investors who don't mind engaging in speculation. The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. The foreign exchange market assists international trade and investment. Forex trading basics
History of Forex Market: At the end of the World War II,Western governments felt the need to create a system to stabilize the global economy. Known as the "Bretton Woods System," the agreement set the exchange rate of all currencies against gold.
In 1971, the Bretton Woods Agreement was abolished and replaced by a different currency valuation system. With the United States in the pilot's seat, the currency market evolved to a free-floating one, where exchange rates were determined by supply and demand.
At first, it was difficult to determine fair exchange rates, but advances in technology and communication eventually made things easier.
In 1990, thanks to computer nerds and the successful growth of the internet . These platforms were designed to stream live quotes to their clients so that they could instantly execute trades themselves
Risk of Forex market
Risk is the other name of Business. Business is not possible without taking risk. Same forex market may highly risky market and it also may highly profitable market.
Special Risks; there is two special risk for forex trading-
- There Is No Central Marketplace.
- There Is No Central Clearing
Before early to do something you should need familiarity about that. Without enough knowledge than you never gain success. This is also applicable in forex trading basics. So keep with us for next discussion, who is thinking that he/she will be future forex trader, I suggest them learn first than go past. For best learnng you may buy a Guide Book on Forex Trade. Better know forex trading basics.