Currencies Used In Forex Market

At the beginning its cleared that the aim was to form Forex Market to fix the rate of currencies against US Dollar. 

So clearly in market several currencies have to survive. From thousands of currency Forex market allows only seven currencies:

History Of Forex: Today’s Forex Market

n Forex instead of dozens of currencies, the main countries trade in seven – U.S. dollars, Australian dollars, British pounds sterling, the Euro, Swiss Franc, Canadian Dollar and the Japanese Yen. Which are traded into pair like USD/EUR, JPY/EUR, CHF/USD. This means that the first currency (which express before/) is the base currency in that case.

Today, the Foreign Exchange Market is international and worldwide. The market is open 24 hours a day, 5 days a week, to accommodate all of the time zones for all of the major players. In the market daily about 2.5 trillion US Dollar transacted.

History Of Forex: Establishment Of Forex Market

Forex Market was set up by the Bretton Woods agreement in 1944, which aims was to fix the rate of currencies against the dollar. This precedent was first put into practice in 1967, when a bank in Chicago refused to fund a loan to a professor in sterling pound. Of course, his intention was to sell the currency, which he felt was priced too high against the dollar, then buy it back later when the value had declined, turning a quick profit.

History Of Forex: Pre-Establishment Period

Long ago, the world's economy was based on the bartering method. The value of a particular item, was measured by it's worth in exchange for other items. But, this system had it's obvious limitations. If you had nothing of value to exchange, you had no way of obtaining items you needed. This created the need to establish a more acceptable way of buying and selling early in history.

In various cultures and economies, anything could be considered valuable as long as there was a need for it. In some cases items such as animal pelts, corn, wheat and even hand made items were exchanged to obtain other much needed items.