/History of Forex Trading

History of Forex Trading

About 2500 years ago, the The Greeks and Egyptians traded currencies and goods with molten silver and gold coins and their value were determined by their weights and their size. 500 years after, throughout the Ancient Rome empire, currency minting was centralized and the government run the monopoly on currency trading.
One thousand years ago, throughout the Middle Ages, copper became the most often used alloy for coins and trading. Today, the US 1 cent coins are made of 2.5% copper and 97.5% zinc.
Around the same time Monte dei Paschi was constructed and its only purpose was to facilitate currency transactions. Since then the bank has been in operation without interruption to the present day, being therefore considered the oldest bank in the world still operating.

The very first Forex market was created in Amsterdam, approximately 500 years ago. This chance to freely trade currencies helped stabilize currency exchange rates and boosted the growth of the market.

240 years ago, in 1875, the Gold Standard was introduced.

In the Gold Standard, a nation Was limited to just minting as much national currency since there was Gold held in reserve. The Gold Standard had the purpose to guarantee the value of a currency. Following the first World War, states had to print more money in order to fund their costs, which signal the completion of the gold standard. From 1913, the number of Forex trading companies rose from 3 to 71 in just 10 years in London.

Throughout the years 50% of all Forex transactions were made in Pound Sterling. In 2013, the British pound was the fourth most traded currency following the US Dollar, the EURO and the Japanese Yen.

During World War II, the Bretton Woods system was introduced. It was a successor of the Gold Standard. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent states.

Today, currency trading can be quite volatile and the exceptional characteristics of Forex trading, such as leverage and a market that’s available twenty four hours, make it quite attractive for traders. Digital crypto currency like Bitcoins became very popular in latest years and due to ongoing worldwide uncertainties and apparently unstable monetary systems, these kinds of currency can have a bright future ahead, because they represent an alternative to centralized and politically controlled currency forms.