Forex Tutorial  -Getting Started on Forex-Investors.com 

Foreign Exchange Tutorial

-Getting Started on Forex-Investors.com

 

Introduction to Foreign Exchange

The Foreign Exchange is a huge financial market with daily volumes exceeding 4.0 trillion US dollars.

Most Influential Players in The Foreign Exchange Market

The most influential players in the Forex market are central banks, commercial banks, and institutional investors. Banks and institutional investors combined account for about 50% of daily turnover. Exporters, Importers, and other similar multinational groups account for about 10% of daily turnover.

□ Read more on: » The Basics of Forex Investing

 

The History of the World’s Exchange Rates

The short history of the world’s exchange rates

The 5th century B.C. silver drachma of Athens was probably the first currency that became accepted outside its issuing state. Since then, Gold was the only real global currency. The Greek Drachma was followed by the Roman Gold Aureus and Silver Denarius that last until the early 4th century A.D.. Afterward, the Byzantine Gold Solidus became the dominant currency, followed by the Islamic Dinar. During the 13th century, Florence Fiorino became dominant in the Mediterranean area, followed by the Venice Ducato in the 15th century. During the 17th century, the world’s dominant currency became the Dutch Guilder. Afterward, and until World War 2, the British Pound Sterling became the most accepted currency in the world. Since WW2, the dominance of the US Dollar is undisputable.

□ Read more on: » Exchange Rates History

 

Forex Regulation & Forex Investor Protection

Forex regulationBefore opening and funding an account with a Forex broker, Forex investors should seriously consider the safety of their money.

 

Key Factors Ensuring the Safety of Forex Investor's Funds

There are quite a few variables that ensure the safety of money:

(i) Forex broker's regulatory status (license)

(ii) Forex broker's country of headquarters

(iii) Forex broker's compensation scheme in case of corporate insolvency

And after a Forex account is opened and funded:

(iv) protecting the account against internet fraud

(v) protecting the account’s balance against extreme market volatility (trading small sizes and using tight capital leverage)

 

This article emphasizes on the first 3 factors (license, headquarters country, and compensation scheme in case of corporate insolvency).

 

The History of the World’s Exchange Rates

 

The short history of the world’s exchange ratesThe different valuation of the world’s currencies has created the need for trading and hedging against market risk. The Foreign Exchange Market operates as a global platform for exchanging different currencies. Here is the short history of the world’s exchange rates.

 

Currencies that Dominated the World

 

The 5th century B.C. silver drachma of Athens was probably the first currency that became accepted outside its issuing state. Since then, Gold was the only real global currency. The Greek Drachma was followed by the Roman Gold Aureus and Silver Denarius that last until the early 4th century A.D.. Afterward, the Byzantine Gold Solidus became the dominant currency, followed by the Islamic Dinar. During the 13th century, Florence Fiorino became dominant in the Mediterranean area, followed by the Venice Ducato in the 15th century. During the 17th century, the world’s dominant currency became the Dutch Guilder. Afterward, and until World War 2, the British Pound Sterling became the most accepted currency in the world. Since WW2, the dominance of the US Dollar is undisputable.

Subcategories

Forex Trading Rules and Trading Tips for Currency Traders