Forex was originated in 1973 …

Money has been around in one form or another since ancient times , during which money changers exchanged coins from one culture to another. However , during the middle ages , the demand for another form of currency other than coins emerged as the method of choice. The Babylonians are credited with the first use of paper bills and receipts. These paper bills represented transferable third-party payments of funds , making foreign currency exchange trading ( also known as Forex or FX ) much easier for merchants and traders.

From the infantile stages of foreign currency exchange during the Middle Ages to World War 1 , the Forex Markets were relatively stable and without much speculative activity. After the war , the Forex Markets became very volatile and speculative activity increased tremendously.

From 1931 until 1973 , the Forex Market went through a series of changes - many of which have paved the way for the road ahead. The Forex Market , as we know it today , originated in 1973. Today , everyone is talking about it …

Today , the currencies are traded by anyone who wishes. This has caused a recent influx of speculation by banks , hedge funds , brokerage houses and individuals. Central banks intervene on occasion to move or attempt to move currencies to their desired level. The underlying factor that drives today’s Forex Market , however , is supply and demand.