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Related ReadingsД¬FI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)в„ў certification program, designed to help anyone become a world-class financial analyst.Disclaimer - Hive Empire Pty Ltd (trading as, ABN: 18 118 785 121) provides factual information, general advice and services on a range of financial products as a Corporate Authorised Representative (432664) of Centra Wealth Pty Ltd AFSL 422704. Forex has become an increasingly popular asset class with investors. This is because, in order to conduct business worldwide, it is necessary for companies, individuals, and governments to exchange billions in various currencies every trading day. The foreign exchange, or forex, market is now the largest financial market in the world in terms of the value of all the trading done each day вЂ“ much larger than any of the worldвЂ™s stock or bond markets. During the 17 th and 18 th centuries, Amsterdam was home to the worldвЂ™s first currency exchange market that enabled international buyers to transact their deals in an official manner. Currency Trading (Foreign Exchange)ДЄs a consequence of buying and selling between people or entities in different countries, there was a need for developing a system for exchanging one nationвЂ™s currency for anotherвЂ™s. Each country developed its own currency in accord with the cost of living and standard of living in their respective domains. Various bills and coins introduced as established representations of stores of value that were backed by the government.

This meant that it became much more difficult for individuals to manipulate the value of their goods or services, and it became easier to arrive at a consensus around the value of a good or service. CurrencyвЂ™s value was considered stable because it was created and backed by some governmental authority. It was the first time that currency was utilized as a store of value that was backed by some kind of an asset (in this case, grain).ДЇundamentally, the store of value was what provided money with a significant advantage over the barter system. During that time, money was used as a form of receipt that represented an individualвЂ™s right to claim grain. The first usage of currency can be traced back to ancient Egypt. Currency, thus, became widely used across the globe and facilitated trade between nations. The development of money as a medium of exchange created a much more efficient economy.Д«y placing a single, monetary value on a good/service, it became much easier to determine its relative value. Bartering made it quite difficult to accurately determine the value of any given good or service or track the evolution in the value of a good/service over the course of time. Before the concept of currency was introduced, goods and services were exchanged for other goods and services under the barter system. Currency refers to money, that which is used as a medium of exchange for goods and services in an economy.

Worldfirst currency rates of exchange