In English the word means the market of interbank forex exchange rates. This term is used to denote the mutual exchange of currencies. The term does not mean the entire set of transactions in currencies. Yet operations are divided into commercial, speculative, hedging and regulators.
Since the Internet every year update and improve, each person has the opportunity at any age and at any time to deal with the currency trading in the Forex market in real time.
All you have to do - is high-quality access to the Internet. Not interfere also acquire and trading platform on the basis of which will be carried out all transactions in the market.
The whole history of the Forex market started in 1971, when U.S. President Richard Nixon rejected the free convertibility of dollars into gold bullion. Of course, this news could not go unnoticed by the world community.
So at the end of that year in Washington signed the so-called Smithsonian Agreement. According to it, set the permissible currency fluctuations in the amount of one percent against the dollar and 4.5 percent. Even tolerated and rates of 9 percent. They have been proposed for these currency pairs in which the dollar was not involved.
This situation has destroyed the whole system of stable exchange rates.
The government in this case pursued a noble goal: to make a more liberal policy on gold prices.
If earlier exchange rates are stable, because there was a gold standard, but now after these dramatic changes, exchange rates were inevitably fluctuate.
All this led to a new activity, such as: currency trading. This meant that the rate of exchange rates depended not on the gold standard, rather, not only on him but also on the demand in the market, which enjoyed a currency.
In January 1976, a meeting of the Ministers who are members of the IMF. This meeting took place in the city of Kingston. Countries - participants of the IMF decided to sign a new agreement, which would regulate the international monetary system device. Thus, the charter of the IMF have been some amendments.
Some countries still have refused such a system to exchange their country was provided to the U.S. dollar or gold reserves.
But in 1978 the country adopted the IMF such a failure at the official level. Starting this year, all the courses were free-floating in the discharge were the main means of exchange rates.
In this new system has foreign exchange settlements there was a final rejection of the principle of purchasing power of currencies only in terms of their gold equivalent.
Therefore, the currencies of countries that have refused to do so, no longer have a gold content. Exchange currency is now on the open market, and was carried out at market prices.
Because an installation of a floating exchange rate, then the market has undergone some changes:
* Central banks are now able to influence the exchange rate, as well as affect the whole economic situation in general. For this they may use different market practices.
* Exporters, importers, and banking systems that serve them, have become regular participants of the currency market as the liquidity of the currency had an immediate impact on their work, and that this influence has been both positive and negative.
All these features are stored anyway and to this day. You yourself can see them starting to work on the Forex market.
Since the Internet every year update and improve, each person has the opportunity at any age and at any time to deal with the currency trading in the Forex market in real time.
All you have to do - is high-quality access to the Internet. Not interfere also acquire and trading platform on the basis of which will be carried out all transactions in the market.
The whole history of the Forex market started in 1971, when U.S. President Richard Nixon rejected the free convertibility of dollars into gold bullion. Of course, this news could not go unnoticed by the world community.
So at the end of that year in Washington signed the so-called Smithsonian Agreement. According to it, set the permissible currency fluctuations in the amount of one percent against the dollar and 4.5 percent. Even tolerated and rates of 9 percent. They have been proposed for these currency pairs in which the dollar was not involved.
This situation has destroyed the whole system of stable exchange rates.
The government in this case pursued a noble goal: to make a more liberal policy on gold prices.
If earlier exchange rates are stable, because there was a gold standard, but now after these dramatic changes, exchange rates were inevitably fluctuate.
All this led to a new activity, such as: currency trading. This meant that the rate of exchange rates depended not on the gold standard, rather, not only on him but also on the demand in the market, which enjoyed a currency.
In January 1976, a meeting of the Ministers who are members of the IMF. This meeting took place in the city of Kingston. Countries - participants of the IMF decided to sign a new agreement, which would regulate the international monetary system device. Thus, the charter of the IMF have been some amendments.
Some countries still have refused such a system to exchange their country was provided to the U.S. dollar or gold reserves.
But in 1978 the country adopted the IMF such a failure at the official level. Starting this year, all the courses were free-floating in the discharge were the main means of exchange rates.
In this new system has foreign exchange settlements there was a final rejection of the principle of purchasing power of currencies only in terms of their gold equivalent.
Therefore, the currencies of countries that have refused to do so, no longer have a gold content. Exchange currency is now on the open market, and was carried out at market prices.
Because an installation of a floating exchange rate, then the market has undergone some changes:
* Central banks are now able to influence the exchange rate, as well as affect the whole economic situation in general. For this they may use different market practices.
* Exporters, importers, and banking systems that serve them, have become regular participants of the currency market as the liquidity of the currency had an immediate impact on their work, and that this influence has been both positive and negative.
All these features are stored anyway and to this day. You yourself can see them starting to work on the Forex market.