
It is not easy to understand the forex market at first glance. Each of the forex exchange taking place comprise of monetary units which can either be the currencies, services or goods. The prime objective of this article is to shed some light on history of forex trading going back to its roots and how it all started. Read on.
As we travel back to the very beginning of forex trading history, the use of barter system for trading was common. The price of goods was expressed and calculated in the terms of goods only. But the limitations of this system required the setting of a common benchmark of value, as a more general accepted means of exchanging. It was common to see everything from pretty stones to teeth to feathers to serve this purpose. But precious metals, like gold and silver, were looked upon as an accepted means of payment as well as a reliable value. But even this system had flaws and was not efficient.
The history of forex trading reveals that in 640 BC, the currency introduction in the civilization coast of Turkey was a step towards advancement in this field. It was possible to settle on the value through a universal thing and that was currency. It became common to see…