Forex - Foreign Exchange –Forex market is a financial market where participants may execute currency purchase and sales transactions according to the marketing rates.

Forex unites the banks participants which conduct deals for currency purchase and sale between themselves every day. Transactions volume per day exceeds 3 billion of US Dollars and keeps up trades during the working week.

What is Forex? You should understand that Forex is not an exchange in the proper sense of the word because it does not have location as New-York or London exchange. Trades are held 24-hours a day, they are regularly conducted regardless of the time.

Trading at Forex is carried out by means of the telephone or special PC programs – trading terminals.

History of the world currency market Forex

In the beginning of the 20th century people do not have an opportunity which we have now.
To buy or to sell a currency or a share at stock was much more difficult; it took more time and required solid capital.

The date of the Bretton Woods Agreement signing (1944) became the starting point in the history of the currency market development. This Agreement was signed by the leading economic states.

It was decided to fix exchange rates (create a stabilizing international currency, US Dollar), and oblige all countries to maintain it.

The matter was that after the Second World War many countries had a demand for American goods and this lead to the rapid US Dollar rise against other currencies.

Having signed this agreement the world community escaped serious economic crises.

Floating rate

Eventually, when the world recovered after the Second World War and the necessity to control the rate significantly decreased the Bretton Woods Agreement was no longer in force.

It began in 1971 and by 1973 all countries haв fully convertible currencies which rates were specified by the market mechanisms.

Forex and modern life

With the computer, clearing bank equipment and internet development the era of the modern Forex market came. Nowadays it is enough to have a computer and special program (for example, MetaTrader4) and access to the Internet.

Traders from all over the world execute operations staying in the office, at home or on vocations. New technologies allow people to work at Forex remaining independent and free.

Basic terms and currencies

Basic currencies:

• EUR EURO
• USD US Dollar
• GBP Great Britain Pound
• JPY Japanese yen
• CHF Swiss franc
• AUD Australian dollar
• CAD Canadian dollar
• NZD New Zealand dollar
• SEK Swedish krona
• DKK Danish krone
• NOK Norwegian krone
• SGD Singapore dollar
• ZAR South African Rand