Brief information about the origin and development of the foreign exchange market.

Currency trading has a long history that dates back to the times of the ancient East, and during the Middle Ages, when caused international banks began to apply the exchange means of payment, valid for presentation to third parties, thereby increasing the flexibility and growth in the number of foreign exchange transactions entered into, began the final formation of the foreign exchange market .
The modern market rates for Cawthorne characterized periodically successive periods of rising volatility (frequency and magnitude of changes) prices and their relative stability emerged in the twentieth century. Until the mid-’30s London was the leading center for foreign exchange trading, and the British pound was the currency for settlement and the creation of reserves. Since then currency trading via telex or telegram, the British pound was the common name “cable” (telegram). After the Second World War, when Britain’s economy has suffered a great loss, and the United States was the only of industrialized countries that are not economically affected by the war, the U.S. dollar, according to the Bretton Vudsskim agreement (1944) between the U.S., Britain and France became the backup currency for all the capitalist countries with a hard peg, their currencies to the U.S. dollar (the creation of the exchange rate band, which should provide the central banks of the countries through intervention or buying currency). In turn, the U.S. dollar was pegged to gold at $ 35 an ounce. The same contract was formed the International Monetary Fund (IMF), which plays an important role in providing credit support to developing and former socialist countries undertaking economic reforms. To meet these goals the IMF uses such tools as reserve tranche to enable countries to use the resources of their own membership quota at maturity, credit lines and agreements such as stand-by. Lines of credit and stand-by – agreements are standard forms of IMF loans, as opposed to compensation such as financial support, which is designed to extend financial assistance to countries with temporary problems due to the decline in exports; replenishment of reserve stocks, intended to aid in the accumulation of primary commodities resources in order to ensure price stability in specific product groups, and extended support to assist countries in financial difficulty, which is the size or duration greater than the volume of other forms of assistance.
An important milestone in the history of the financial markets of the twentieth century was the introduction in the late 70′s freely floating exchange rates, which led to the formation of Forex in its modern sense. This means that the currency may be traded by anybody and its value is a function of the current supply and demand on the market and specific intervention that require constant monitoring, no. After the introduction of a floating exchange rate there was a significant increase in the volume of trade in the Forex market. If in 1977, the daily turnover stood at its U.S. $ 5 billion, by 1987 it grew to 600 billion, and in September 1992 stood at $ 1 trillion by 2000 and stabilized at the level of about one and a half trillion dollars . This significant increase is due to the major factors discussed below. An important role is played by factors such as increased volatility of exchange rates, the efforts of the mutual influence of the economies of various countries on the value of the interest rates of central banks, which essentially depends on the exchange rate of the currency, increase competition in product markets and, in equal measure, amalgamation of different countries, technological revolution in the field of foreign exchange operations. The last expression in the creation of automated dealing systems and the transition to currency trading on the Internet. Dealing systems banks of different countries in a single network, and special matching systems are electronic brokers.
The development of computer technology, software, telecommunications, and increased experience have led to an increase in the skill level of traders and their ability to make profits and reduce risk in operations. Because of this increase in trade qualification also affected the growth of trade.