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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