Defination Of Forex And History

Forex is derived from the words Foreign Exchange and is also occasionally referred to as ‘Spot FX’ or simply ‘FX’.

As a simple definition, Forex trading is the exchange of currencies at varying exchange
rates, which result in profit (or loss) for those who participate as traders.
Forex is derived from the words Foreign Exchange and is also occasionally referred to as ‘Spot FX’ or simply ‘FX’. As a simple definition, Forex trading is the exchange of
currencies at varying exchange rates, which result in profit (or loss) for those who
participate as traders.

The History

Established in 1971 when floating exchange rates began to materialize, the Forex market
has enjoyed huge growth, particularly since the Internet advanced to a level that enables
trade to be made easily 24 hours a day. More recently, the minimum deposit level for an
account has fallen below the $100 mark meaning currency trading is now possible by
people from all walks of life.

Historically, the FOREX interbank market was not available for small speculators. With a
previous minimum transaction size and often-stringent financial requirements, the small
trader was excluded from participation in this market. But today market maker brokers
are allowed to break down the large interbank units and offer small traders the
opportunity to buy or sell any number of these smaller units (lots).