The origin of the FOREX trading traces its history to long time ago. Different currencies and the need for change existed since the Babylonians. He is credited with the first use of paper notes and receipts. Speculation hardly ever happened, and of course an enormous speculative activity in the market today would have liked.

At that time, the value of output expressed in terms of other goods (also known as the barter system). Obvious limitations of the system is required to build an exchange more generally accepted. It was important that the common base value can be determined. In some countries, such things as teeth, feathers even stones served this purpose, but soon various metals, gold and silver, established themselves as some form of payment accepted and reliable store of value . Trade between the peoples of Africa, Asia, etc. through this system.

Originally printed in metal parts and elections in a stable political system, the introduction of the role of public debt during the Middle Ages also gained acceptance. Types I.O.U. intrusion more success than through persuasion and is now the basis of modern currencies.

Before World War I, most central banks supported their currencies with convertibility to gold. However, the gold exchange standard is a weakness of boom-bust pattern. As an economy strengthened, it will import a large quantity abroad until it ran its gold reserves required to support the money, therefore, decreases the money supply, interest rates have and increased economic activity slowed to the point of the recession. Ultimately, prices have hit bottom, appearing attractive to other nations, to be held in a buying frenzy that is injected into the economy with gold to increase its money supply, the rate of lower interest and wealth in restoring the economy .. However, for this type of gold exchange, not necessarily the central bank to the extent of government's exchange reserves. It does not happen very often, but when a group mentality promoted the idea of ​​a disaster convert gold in mass, panic resulted in so-called "bank run" The combination of increased supply of paper money without gold cover led to devastating inflation and resulting political instability. The Great Depression and the removal of the gold standard in 1931 created a meaningful peace in the Forex market activity. From 1931 to 1973, experienced a series of changes in the Forex market. These changes greatly affect the global economy at the time and speculation in the Forex market is still weak.

To protect local national interests, increased foreign exchange controls to prevent market forces from punishing monetary irresponsibility.

Towards the end of World War II, the Bretton Woods agreement was reached on the initiative of the United States in July 1944. Conference held in Bretton Woods, New Hampshire, rejected the suggestion of John Maynard Keynes to a global reserve currency in favor of a system built on the U.S. dollar. International institutions like the IMF, World Bank and GATT were created in the same period emerged victorious from World War II to find a way to avoid a crisis of stable exchange leads to war. Bretton Woods fixed exchange rate generates the return of the gold standard, in part, is set at $ 35.00 USD per ounce of gold and the establishment of major currencies against the dollar, initially intended to be Standing.

Bretton Woods system was under increasing pressure as national economies have taken different directions in 1960. Some rearrangement of the system are kept alive for a long time but eventually Bretton Woods collapsed in early 1970 after President Nixon suspended the gold convertibility in August 1971. The dollar is no longer adequate as the international currency at that time was under heavy pressure from increasing U.S. budget and trade deficits.

Recent decades have seen foreign exchange market became the largest in the world. Restrictions on capital flows have been eliminated in most countries, allowing market forces free to adjust the exchange rate according to their perceived values.

European Economic Community introduced a new system of fixed exchange rates in 1979, the European Monetary System. Search continues in Europe for currency stability with the 1991 signing of the Maastricht Treaty. This is not only to fix the exchange rate, but also actually replace many of them in the euro area in 2002. London, and remains the main market abroad. In the 1980s, became an important center in the Eurodollar market when British banks began dollars of credit as an alternative to the pound to maintain its leading position in global finance.

In Asia, the lack of sustainability of fixed exchange rates has gained new relevance to events in Southeast Asia during the second half of 1997, when it devalued the currency after currency against the U.S. dollar . States., Leaving other fixed exchange rate changes, especially in South America also looking very vulnerable.

While commercial companies have to deal with the foreign environment is much more volatile in recent years, investors and financial institutions have found a new field. Forex currency market worked initially at the central bank and government institutions, but later accommodate the various institutions, now also includes the boom of the dot-com and the World Wide Web. Size of the Forex market is now far superior to other investment markets. The foreign exchange market is the largest financial market in the world. About 1.9 billion traded daily on the forex market. It is estimated that more than Rs 1,200 million traded daily. Can we say easily that FOREX market is a lucrative opportunity for modern intelligent investor.