Schatz Markets Brief the History of Forex Currency Market from Ancient Times to Today’s World.
Trading was introduced 2000 years ago during 16th to 17th century however the history of currency trading and the Forex market 2500 years ago via metals. The Greeks and Egyptians traded goods and currencies with molten silver and gold coins and their value were determined by their actual weights and the size of the metals. Money-changers were also the silversmiths and/or goldsmiths of modern ancient time’s forex currency traders.
1000 years ago, during the Middle Ages, copper became the most commonly used metal for minting coins and trading. Thus, by using copper instead of gold, it was possible to create coins with lower value. As we seen today, the US one-cent coins are made out of 2.5% copper and 97.5% zinc.
500 years later, during the Roman Empire, currency minting was centralized and a government-run monopoly on currency trading was established
150 Years ago, The Amsterdam, Forex trades throughout the whole world were initiated. During the time, the Gold Standard was introduced. Within the Gold Standard, a country was limited to only minting as much national currency as there was Gold held in reserves. The Gold Standard had the purpose to guarantee the value of a currency.
The First World War, countries had to print more money in order to finance their expenses, which signals the end of the Gold Standard. By 1913, the number of Forex trading firms rose from 3 to 71 within only 10 years in London. 50% of all Forex transactions were made in Pound Sterling.
The Electronic Trading Era on Share Market
The American Stock Exchange (AMEX) got its start in the 1800’s and was known as the “Curb Exchange” until 1921 because it met as a market at the curbstone on Broad Street near Exchange Place. Its founding date is generally considered as 1921 because this is the year when it moved into new quarters on Trinity. However, it wasn’t until 1953 that it officially became the American Stock Exchange. External Link In November 1998, the National Association of Security Dealers External Link announced that the American Stock Exchange would merge with the National Association of Securities Dealers creating “The NASDAQ-Amex Market Group.” However, the American Stock Exchange remained as an active exchange.
The Internet Era on Forex Market
On 6 August 1991, the World Wide Web went live to the world. The internet has changed many revolutionized the way forex trading is done. A majority of forex transactions take place online, rather than on the exchange floors.
Meta Trader 4 / MT4 Era on Forex Market
MetaTrader4 , also known as MT4, is an electronic trading platform widely used by online retail foreign exchange speculative traders. It was developed by MetaQuotes Software and released in 2005. The software is licensed to foreign exchange brokers who provide the software to their clients.
Forex Market on Today’s World
The volume of trading in forex markets stands at more than $5 trillion a day, much more than the volume on the New York Stock Exchange. Also, the most traded currency is the US dollar, which features in nearly 80% of all forex trades. Nearly 90% of forex trading is speculative trading.