FOREX: THE STORY 

Forex as we know stands for foreign exchange, it involves trading in different currencies from around the world. I personally would say forex is advanced economics in display.

But then, what exactly is the story behind forex? What gave birth to the idea of forex? How well do you understand your economics? And how can you enter the world of forex? 

THE BEGINNING 

Long before the idea of forex, humans have always traded in different forms, exchanging something to gain another thing birthed the very idea of trade by barter, before the conception of trading with Money.

Forex itself has no specific date of conception, but forex  began about 500 years ago in Amsterdam, you are probably thinking “that’s a long time” well 500 years ago when the idea was born its purpose was to help with trading currencies freely, so as to stabilize currency exchange rate in Amsterdam.

240 years ago, precisely in the year 1875, something called the GOLD STANDARD was introduced, with this concept a country had a limit to how much minting they could do, so minting was done with the account of how much gold that particular country had in reserve. The Gold standard also helped to guarantee the value of a country’s currency.

Unfortunately after the end of world war one a lot of countries had to print more money to help them finance their expenses, this brought an end to the concept of the GOLD STANDARD.

There were other concepts that drove the full birth of forex after the birth and death of the gold standard and they are: 

Bretton wood system : introduced during world war II and was later scrapped during president Nixon’s tenure in 

Free Floating  currency system was then introduced : but by then the forex market was already closing in, this happened in 1972 all through 1973

 Complete Floating and relatively free market conditions: this system was our first introduction into the Modern forex market and it came to be in 1973, the state stopped controlling the affairs of the Forex Market.

Introduction of computer monitors by Reuters, which replaced telephones and telex for getting trading quotes.

In the middle of 1980 Reuters again developed a system of electronic trading, this gave us insight to what we now have as electronic trading. 

In 1913, the number of firms involved in the forex market moved from 3 to 71, in London 50%of all forex transaction were being made in pounds, by the beginning of 2013 pounds reverted and became the 4th most traded currency after the US- Dollar, euro and yen which belongs to the Japanese. 

FOREX NOW

As at today, the total amount being traded in the forex market ranges between $4 to% trillion, making forex the largest financial market in the world. 

Even though over the years methods of trading have improved and have grown, the only thing that has stayed constant is the people involved in the forex market, with the desire to trade continuously and explore the pros and cons of the market. Man can now trade on phones, laptops and Ipads without having to leave their houses or jump from one bank to another.

It is essential for us to also note that trading of currencies can be very quick and the forex market also has very unique characteristics and they are;

Leverage 

A market that operates 24 hours every day, no breaks and zero holidays.

Cool right? For retail traders, knowing that you can get into a market at any time to make some money without stress.  And now that the whole world has gone digital, it is important to know what type of currency is being traded at the moment and fortunately, that currency is crypto currency like bit coin. 

The world’s economy is unstable and uncertain at the moment, so it is quite smart to trade your money in crypto currency. 

At signal trading hub, we not only give you the opportunity to just trade, we also help you understand the ropes of the market, the do’s and don’ts of the market giving you an advantage in the forex market, call it a cheat code, we call it being the best we can afford to be.