Forex began its official history in 1976, but it is possible to trace the first operations on the foreign exchange market much earlier. Forex is evolving and changing. Sure. The main principles remain unchanged. But new chapters of Forex history are emerging, new strategies are being created, and new people who have contributed to the development of the market appear on the Forex map. Every trader who wants to become successful needs to trace the history of Forex. This is necessary not only to gain general knowledge, many trade secrets are contained in history.
Principles of Forex trading
The Forex market is a platform for interbank currency exchange. On Forex, assets do not have fixed values, which makes quotes free. All Forex transactions take place in the Internet space – the market does not have a single center or an official website. This is an over-the-counter space, which is a set of transactions of its participants for the purchase or sale of currency.
Forex liquidity is provided by majoritaries (they are called “liquidity providers”).
Exchanges open according to time zones. Trading is conducted around the clock.
Forex is influenced by the world’s leading countries. This is due to:
- the degree of development of their economies;
- oreign and domestic policy;
- central bank management bodies.
Several large banks and brokerage houses form a group of majoritaries. Due to large capitals, they can greatly influence the market. Corporations and firms also influence him, but not as much. Private investors, despite their large number, almost do not change anything.
Why has Forex become so popular?
The popularity of Forex is not just words. This is what the statistics say. Thousands of traders come to the market to try their hand. Now traders from all over the world are trading on Forex.
- The main reason for popularity is the opportunity to earn, and earn a lot of money. This is a fact. Hundreds of traders have already managed to earn a lot of money. This is hundreds of thousands and even millions of dollars. Naturally, not everyone succeeds, because many simply forget about the basic rules. Such as training, work and development.
- The second reason for popularity is accessibility. Do not think that traders are a secret society that you can get into strictly by pass. Trading is available to everyone. Learn, interact and trade. Everyone can succeed if they show diligence and patience.
- The third reason for popularity is simplicity. No, do not think that trading is easy for everyone. But everyone can learn. Many successful traders started from scratch. They did not have the knowledge, experience and large investments. But they tried, studied, made mistakes and were able to go this way. Everyone can become successful. Now in the world of information technology, you can take courses online, choose a mentor or broker, work at home while sitting at a computer. It’s all simple, but you need to try. And most importantly, you need to have a desire.
Forex is a working tool. It was created so that people could exchange currencies and make a profit. It really works, but you need to know how to use Forex so as to make a profit and succeed. Work by yourself, and then Forex will work for you.