A Brief History of Forex Trading

BUSINESS

A Brief History of

LegacyFX Introduction

FOREX TRADING

A BRIEF HISTORY OF FOREX TRADING

The history of trading is as old as civilization. As early as 6000BC, there is evidence of a barter system being used to exchange goods and services between Mesopotamian tribes.

Currency dates back to the first gold

print more money to pay for the

coins being produced as early as 6th

war effort.

century BC, which were soon widely accepted as an exchange medium.

The Gold Standard

The Bretton Woods System The Bretton Woods system was im-

From the early 19th century until

plemented after the Second World

just after the First World War, the

War, in which currencies were fixed

gold standard was the accepted

to the value of the US dollar rather

standard for currency trading. This

than gold. This system was ended

meant that all governments accep-

when the world reached a point

ted paper money could be traded

where there was not enough gold to

for gold to the value printed on

back every US dollar in circulation.

the paper. However, during the

In 1971, the free floating exchange

war this had to be abandoned as

system Forex is based on today re-

governments needed to be able to

placed the Bretton Woods system.

The Bretton Woods system was implemented after the Second World War, in which currencies were fixed to the value of the US dollar rather than gold.

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