What is forex market?
1 answersQuestion asked ( July 27, 2009 , Shopping / Finance )
Is it advisable for a novice to enter the forex market? A friend of mine told me it was better if i could get a background and some knowledge in the subject. Can someone explain to me the origin of foreign exchange?
Answers to : What is forex market...
Answer
A market wherein one currency is exchanged for another is known as Foreign Exchange. It is also represented as FX or Forex.
Prior to First World War gold standard were used as the basis for foreign exchange wherein currencies were converted into fixed amount of gold. Since, 1920 US Dollar was used as a basis as it represented the world’s largest economy. In 1944, Bretton Woods Agreement made US Dollar as international standard currency. All other currencies were fixed against the dollar. By 1973 exchange rates were allowed to float.
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