History of Forex Trading - The Bretton Woods Agreement

In 1967, a Chicago bank refused a college professor named Milton Friedman a loan in the amount of £ (Pound Sterling) because he intends to use this loan to sell and buy back the dollar, he we have recognized that the Pound is the price too high against the dollar. He wanted to sell this cash, and then bought it when the Pound fell to a low price and return them to the bank. Of course, by the way he was quick profit. The bank's refusal led to the Bretton Woods Agreement agreement is set 20 years later. Agreement of the Bretton Woods Agreement took dollar (USD) as standard, and set the exchange rate between gold and dollars is $ 35 / 1 ounce.

Forex Chart: Candlestick Charts

Candlestick Charts show the same information as a bar chart, but in a nice graphical format. The bar rack is only about high prices to lower prices by a vertical line.

However, in Candlestick Charts, a rectangle shown in the middle between the opening price and closing price. If the rectangle is filled or colored, the price closed lower than the opening price.

Bar Charts

A bar chart also shows the close price, open price, as well as the high price and low price. The root of the vertical bar only the lowest exchange rates at that time, while the tops of the bar just paid the highest price. Therefore, the vertical bar about exchange of currency pairs. Bar chart graph is also called "OHLC (Open, High, Low, Close), because it indicates the price open, high, low and closing prices.

Line Charts

Line Charts:

A line diagram from a single connection point closing price to a next point. When combined into a single line, we can see the overall price changes over time of a currency pair. Example line graph of E / U:

Why Forex Trading? (P4)

Because Forex is changing, most transactions can be done with the current market price. You can not avoid all risk in the transaction (securities, real estate, etc ...) but can be avoided by a few software programs of currency broker, these programs will inform tell you the exact price enter before execution. You are allowed to choose to avoid or take risks.