Exploring The Concept of

FX Trading

Forex trading, or the exchange of currencies, has roots dating back centuries to when merchants exchanged currencies during trade routes. The modern FX market, however, began taking shape with the adoption of the gold standard in the 19th century, where currencies were pegged to gold. After World War II, the Bretton Woods Agreement established the U.S. dollar as the dominant reserve currency, linking it to gold, but this system collapsed in 1971, leading to the creation of a free-floating exchange rate system.

Since then, technological advancements and globalization have transformed Forex into a 24-hour, digital marketplace, where trillions of dollars are traded daily, driving international commerce and investment.