Download Forex for Beginners 2020 Book in PDF, ePub and Kindle
Do you know what the Forex Trading is? Do you want to know how to trade in Forex? What Is Forex Trading? FOREX is a short form of Foreign Exchange, and therefore FOREX trading is the exchange of currencies around the world. It is a trade that is referred to as Over the Counter Trade (OTC) because it takes place without a physical place to meet. The buyer and the seller are only connected through telephone, telex, and a communication system. However, there few centers where the trade takes place in fixed places, an example is in Paris and Brussels, where bank representatives meet to bargain and fix rates of popular currencies. In FOREX trade, the major currencies include the US Dollar, the Japanese Yen, and the Euro. The participants in the trade include the central banks, exchange brokers, commercial banks, and corporates. The individual traders are involved in the trade through the exchange brokers. Basics Of Forex Trading The history of FOREX trading dates back to the time when World War II ended. After the war, the world started to experience instability in the economy, and most western governments needed to curb the situation. The government, therefore, agreed to have a Bretton Woods System, which was to exchange gold with other currencies. All the currencies were then traded against the US dollar that was set using the value of gold at the time. The situation stabilized for some time, but when the economies started growing at different, the system became limiting for major economies such as the US. The fluctuation rate was limited to a maximum or minimum of 1% compared to the dollar, and any nation that violated this had to control the imbalance through its central bank. The US felt that stopped its transaction using the Bretton Woods System, which brought a crisis that led to the abolishment of the system in 1971. The Bretton Woods System was replaced by another currency valuation system. The new system was different such that unlike the Bretton System, which had fixed rates, it had free-floating rates that were determined by the forces in the market. Individual currencies varied in value, thus increasing the need for exchange and trading. This system is what is still in use for FOREX exchange today. The new system had a problem of determining fair rates of exchange, but they were alleviated later, as the improvement in communication technology made it easier. In the 1980s and 1990s, it was expanded to commodity trading advisors (CTAs), funds, big investors and large corporations. This is because this group of investors was able to adhere to the strict guidelines established for credit by the big banks; smaller investors could not meet the guidelines. In the 2000s, the market grew and gained much recognition by more individuals around the world. The computer technology also grew rapidly during this period, leading to the emergence of online FOREX trading, which is done through brokers. Do we have your attention now? In this book we will discuss the following topics: Introduction to Forex What a Beginner Needs to Know About Forex Trading Elements Of Forex Choosing A Broker And many more! Are you excited? Look no more! What are you waiting for? Download our book now and know everything about Forex Trading!
