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Currency Trading As An Economic Activity

By Benjamin Henry

Every country came out with their own banknotes or currencies. They were given different names such as Dinar, Franc, Lira, Krone, Mark, Peso, Pound, Rial, Ruble, and Rupee. Some gave the same name but of different value such as dollar for the United States, Canada, Australia, Malaysia, Singapore and Zimbabwe. Some countries adopted a common currency as Euro by the European Union. The trade between countries was to be transacted with their respective currencies. This required that exchange rates between currencies are to be fixed. These were fixed by the central bank and the government. Banks and governments have to sell and buy currencies in order to facilitate international trade.

When exports increases, the demand for the currency of the exporting country increases. The value of its currency appreciated. Currency has a floating rate with the demand and supply determining the exchange rate of the currency. With increasing trade and trade in currency, a currency market emerged. Currency itself soon began to be extensively traded as a commodity. Speculators such as money managers and currency traders moved in and trading in currencies by speculators increased. It did not take much time for speculative money trading becoming the major activity in the currency or Forex market. Speculation in currencies soon began to exert a major role in determining the value of the currency and its exchange rate.

There is a way to learn something about the way the Forex market operated. These are the various CDs, books, e-books and video courses on the subject. They promise to teach all about Forex market and currency trading. These also shows you the way to become a Forex market player and what Forex trading strategy to adopt. Some of these are Forex Trading Explained, Tax Lien Investing, Forex Trading Made EZ, The Forex Video Course, Instant Forex Profit, The Magical Forex Trading, Professional Forex Training, Forex Assassin, The Forex Strategy Workbook and Auto Cash System. However, it is necessary to check out what users and others have to say.

By the 13th century itself, paper money emerged with China as the first country to adopt paper money. In 1661 Sweden too shifted over to paper money and was the first European country to do so. Sweden’s copper based money system was too difficult to handle when the goods to be traded was of higher value. Paper money soon spread as it was easy to produce, take anywhere and transact. Moreover, the respective governments too backed it up by linking the currency to gold standard till about 1990. But this was soon abandoned. Now it has a floating rate with the market itself determining its rate.

You may think currency trading is a trouble-free business but you’re wrong because there’s so much to be learned. To participate in this type of business, you’ve got to acquire all the necessary skills and Forex strategies.

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Article Citation
MLA Style Citation:
Henry, Benjamin "Currency Trading As An Economic Activity." Currency Trading As An Economic Activity. 3 Jul. 2010. uberarticles.com. 10 Jan 2015 <http://uberarticles.com/finance/currency-trading/currency-trading-as-an-economic-activity/>.

APA Style Citation:
Henry, B (2010, July 3). Currency Trading As An Economic Activity. Retrieved January 10, 2015, from http://uberarticles.com/finance/currency-trading/currency-trading-as-an-economic-activity/

Chicago Style Citation:
Henry, Benjamin "Currency Trading As An Economic Activity" uberarticles.com. http://uberarticles.com/finance/currency-trading/currency-trading-as-an-economic-activity/


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