The Development Of The Forex World

The development of Foreign Exchange market or better known as Forex has demonstrated a very stunning graphics. The Decade of the 1980s, the value of the transaction, forex trading was only about $ 70 billion. But in the next 2 decades the value of this transaction has reached US $ 1.5 trillion, and the latest data precisely in May of 2009 shows the value of the transaction is fantastic, can reach up to a total of US $ 3.2 trillion.

 It feels less complete when we discuss only about the ins and outs of Forex, without knowing the background incidence of the forex world itself. Actually how can forex developments until it becomes such a huge business to what it is today? Then what factors contributing to its development? Here I will try to review the development of the world's currency exchange that ultimately aspects influenced the incidence of the Forex world.

1. Currency

Currency coins were first used at the time of Zahiliyah in the Kingdom of Pharaoh. Whereas paper currencies were used for the first time at the time of Babylon.

2. Bretton Woods System-1944

On 22 July 1944 monetary Conference has held a large-scale international, which became known by the term "The Bretton Woods Conference, which was attended by 44 countries. Where the intention of holding the Conference aims to draw up a plan in making monetary system. Two years after the Conference, then forming the IMF and the World Bank to oversee the system.

3. Standardization of gold price-1800

In these years, currency values guaranteed by the pure gold, which is the standard of the country. With hope, the value of the currency in a country of Europe and America at that time was relatively stable.

4. the Floating Exchange Rate System

The Bretton Wood system goes up to 30 years, because in some countries are still experiencing great economic crisis is great. On August 15, 1971, President Nixon announced the Floating Exchange Rate System for the first time. Subject is re-affirmed in the "Smithsonian Conference", December 1971 in Washington. A simpler system of floating that is valid up to now which was eventually followed by the other countries.

5. Forex on the era of the 1980s

On trade transactions of Asia, Europe and America increased very rapidly, to be exact of US $ 70 billion/day up to US $ 1.5 trillion/day. In the next two decades that was triggered by rising world oil prices and technological advances at the time.

6. Forex in the 1990s in 1990

Trade Forex online start was conceived, exactly diChicago, formerly circa 1987 and began to be used starting in 1992. This system allows market participants to conduct transactions over the internet even though they are located far from where trading stock and currency exchanges.

7. the millennial era 21 Forex

About the date 01 January 2002, Forex history grew with the introduction of the Euro as the official currency in 12 European countries. Currently, the Euro is entered in five major currencies are most often used in the Forex market. The above picture can already be seen that development of forex which form an outline of the changes in the forex world. To that end I will parse 2 indicators that influence factors development of technology and application of regulation memfasilitator of the change in the Forex world. I would also suggest that unwittingly, that the philosophy informing the factor 2 other than the User will increase Trading Experience.

The development of the forex world in which the perpetrators are collectively become much more responsive to a change and development, which took place over a relatively long time vulnerable and through the evolutionary process continues to this day. Technological factors, cannot be denied to be one of the catalysts for the acceleration of the growth of the forex business. Starting from developing a global electronic trading system, the first in 1987 by CME Globex are helped by technology and the mass media network Reuter became the forerunner of the birth of the online trading system.

By using the internet, forex trading can be done online through hundreds of brokers by using some kinds of trading platform. The market participants no longer have to come to a place of trading securities and currencies, but they can do enough trading from home or the Office. Technologies that provide many factors ease, making forex as one branch of investment with transaction value multi-million and continues to grow by leaps and bounds over the past 3 decades.

Then comes another factor that supports the progress of forex is the regulation that keeps established and developed in an effort to ensure the security of this business, in particular for the investor. The existence of a will in the form of a rule in the process of starting forex trading was marked in 2000 initiated by us President Bill Clinton, in the same time with the American Congress and Assembly of the forex trade association at that time be the beginning of the birth of the body – the body and the Association that regulates a matter forex trading such as, the National Futures Association (NFA) and the Commodity Futures Trading Commission (CTFC) America and the Financial Services Authority (FSA) of the United Kingdom. Where the regulation has been formulated, making the forex business is increasingly evolving towards safer and better.

I just want to emphasize that whether intentional or not, it is actually the basic philosophy of the Forex world has been "developing and adapting" were: an increase in Trading User will Experience. As explained above, where the development of the Forex world is facilitated at least, there are two things;

1. The inception of the development of technology in the development of the forex trading system.

2. Existence of Regulations that can set the culprit.

The development of technology (especially the internet), provides convenience to traders to be trading in a more flexible (e.g. from home). It easy for traders is synonymous with User: better Trading Experience. Regulations and procedures that have been established for the offender trading (one of them is the broker), making the Forex world on the whole, moving towards a more secure and trustworthy. More secure and reliable are the factors that contribute to the comfort for traders which also means: better User Trading Experience. Konklusinya, an increase of User Experience Trading makes forex business from year to year as though it grew to be one of "the biggest investment market" should be taken into account as one investment option for us.

From the explanation above, do you already know about the history of the development of Forex before? Here I conclude that the system of Forex Trading has evolved, which through time and quite a long process, changed to "form" which is more in line with the wishes of the trader; more trader-friendly and better appreciate the desire/willingness of traders to increase their trading experience. And on this day, Forex Trading has become an unusually large industry, better and fairly regular basis due to the regulations of the agencies that have authority.

Posted by Unknown on Saturday, January 31, 2015 - Rating: 4.5

Title : The Development Of The Forex World
Description : The development of Foreign Exchange market or better known as Forex has demonstrated a very stunning graphics. The Decade of the 1980s, the ...

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