Forex and Zulutrade Autotrading information with ZuluFX

May 13, 2011

History of the Forex Market courtesy

The Foreign Exchange market, also referred to as the "Forex" or "FX" market is the largest financial market in the world, with a daily average turnover of well over US$1 trillion -- 30 times larger than the combined volume of all U.S. equity markets.

"Foreign Exchange" is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY).

There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency. The other 95% is trading for profit, or speculation.

History of Foreign Exchange

The foreign exchange market (fx or forex) as we know it today originated in 1973. However, money has been around in one form or another since the time of Pharaohs.
The Babylonians are credited with the first use of paper bills and receipts, but Middle Eastern moneychangers were the first currency traders who exchanged coins from one culture to another.

During the middle ages, the need for another form of currency besides coins emerged as the method of choice. These paper bills represented transferable third-party payments of funds, making foreign currency exchange trading much easier for merchants and traders and causing these regional economies to flourish.

Getting Started in Currency Trading - A Primer for the New Trader

Getting started as a currency trader is easy. But doing it correctly can make a big difference to you chances of success. In Forex the statistics are probably as bleak as in futures where nearly 90% of new traders fail; some very quickly.

I have traded futures, stocks and (since 1997) Forex. I made many mistakes early on; most traders do. But I was fortunate to have an experienced trader as a mentor. Had I followed all of his advice I'm sure I could have made my early trading life easier. But the markets are exciting and we tend to be caught up in that excitement.

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