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The following article was published in our article directory on December 19, 2014.
Learn more about SpinDistribute Article Distribution System.
Article Category: Finances
Author Name: Frans Boucken
It is said that forex trading started during the ancient times when money changers trade money, while taking commission or payment for their effort. This can be seen in the Talmuic writings in the Biblical times, when money exchangers worked in city stalls and in temples as well. This extended until the fourth century, as seen in the Byzantine ruling, when currency was used to trade other items, such as food, pottery, and raw materials.
In the medieval period, this was witnessed in the Medici family of Europe, who were ordered to open banks in a number of locations, to exchange the currencies for the merchants who sold textiles. By the 17th century, Amsterdam was able to create an active forex market, until it was created in the 1700, for the welfare of England and Holland. Forex trading became more prominent in the 1800, when financial institutions were opened to exchange currencies for international trade. By the 1900, the foreign exchange market started to increase, and the holdings of the countries began to escalate at a rate of 11|every year. The leading countries began to take hold, so that by the 1930s, forex trading was integral to the fiscal functioning of a city, state, or region.
Forex trading is a process wherein the currencies are being exchanged in order to conduct business with other foreign countries. Take, for example, the case wherein an American consumer would want to purchase cheese that was made in France. To do this, a product importer would be needed to import the French cheese to the United States, and
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xz��FN��'�� 4'"��� ' � � ����vx��,BD������������������������������������������������������Uh��CJOJQJaJ-h;t�h|tP5�CJOJQJaJh H�CJOJQJaJh|tPCJOJQJaJh�1gCJOJQJaJhH1�CJOJQJaJ-h;t�h�W�5�CJOJQJaJh�W�CJOJQJaJhaNMCJOJQJaJ6then pay the French company in euros. This can be done by exchanging the equivalent value of the U.S. dollars into euros. In forex trading, the main objective is to exchange the currencies, so that products may be transacted from one country to another, as well as from one type of currency to another.
Meanwhile, the foreign exchange market is said to be the world s leading asset class, with huge trading volume of $5.3 trillion per day. It operates every day, except during weekends, or from 22:00 GMT on Sunday time of Sydney, until 22:00 GMT on Friday time of New York. More so, it stands as the most preferable market when it comes to perfect competition.
In forex trading, the currencies are being exchanged, usually in the financial centres distributed around the world. These financial centres act as the anchors of financial trading, as they supply the currencies continuously for different types of buyers and sellers. They are the ones that presuppose the relative values of the different currencies used in different countries, and with the assistance of financial institutions, become the center for currency trading. Meanwhile, they do agreement with the banks, which in turn do agreement with smaller financial institutions, as well as the other dealers that are involved in forex trading. There are likewise, other financial corporations like the insurance companies, which are involved in this currency trading, and they do well in reaching other individuals, corporations, and institutions that needed to trade their currencies.
Keywords: forex trading, best forex robot, best forex signals, auto forex trading
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