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  • #151 Collapse

    rade during the ancient world so that people could buy and sell items like food, pottery and raw materials.[10] If a Greek coin held more gold than an Egyptian coin due to its size or content, then a merchant could barter fewer Greek gold coins for more Egyptian ones, or for more material goods. This is why the vast majority of world currencies are derivatives of a universally recognized standard like silver and gold.
    re limited control of international trade. Motivated by the outset of war countries abandoned the gold standard monetary system.[23]

    Modern to post-modern[edit]
    From 1899 to 1913, holdings of countries' foreign exchange increased at an annual rate of 10.8%, while holdings of gold increased at an annual rate of 6.3% between 1903 and 1913.[24]

    At the time of the closing of the
    U.S. President Richard Nixon is credited with ending the Bretton Woods Accord and fixed rates of exchange, eventually bringing about a free-floating currency system. After the ceasing of the enactment of the "Bretton Woods Accord" during 1971,[32] the Smithsonian Agreement allowed trading to range to 2%. During 1961–62, the amount of foreign operations by the U.S. Federal Reserve was relatively low.[33][34] Those involved in controlling exchange rates found the boundaries of the Agreement were not realistic and so ceased this in March 1973, when sometime afterward none of the major currencies were maintained with a capacity for conversion to gold, organisations relied instead on reserves of currency.[35][36] During 1970 to 1973 the amount of trades occurring in the market increased three-fold.[37][38][39] At some time (according to Gandolfo during February–March 1973) some of the markets' were "split", so a two tier currency market was subsequently introduced, with dual currency rates. This was abolished during March 1974.[40][41][42]
       
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    • #152 Collapse

      3]) the Bank of China allowed certain domestic "enterprises" to participate in foreign exchange trading.[54] Sometime during the months of 1981 the South Korean government ended forex controls and allowed free trade to occur for the first time. During 1988 the countries government accepted the IMF quota for international trade.[55]

      Intervention by European banks especially the Bundesbank influenced the forex market, on February the 27th 1985 particularly.[56] The greatest proportion of all trades world-wide during 1987 were within the United Kingdom, slightly over one quarter, with the U.S. of America the nation with the second most places involved in trading.[57]

      During 1991 the republic of Iran changed international agreements w
         
      • #153 Collapse

           
        • #154 Collapse

          Reuters introduced during June 1973 computer monitors, replacing the telephones and telex used previously for trading quotes.[43]

          Markets close[edit]
          Due to the ultimate ineffectiveness of the Bretton See also: History of Retail foreign exchange platform
          Market size and liquidity[edit]
             
          • #155 Collapse

            Main foreign exchange market turnover, 1988–2007, measured in billions of USD.
            The foreign exchange market is the most liquid financiave grown rapidly in recent years, reaching $166 billion in April 2010 (double the turnover recorded in April 2007). Exchange-traded currency derivatives represent 4% of OTC foreign exchange turnover. Foreign exchange futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts.

            Most developed countries permit the trading of derivative products (like futures and options on futures) on their exchanges. All these developed countries already have fully convertible capital accounts. Some governments of emerging economies do not allow foreign exchange derivative products on their exchanges because they have capital controls. The use of derivatives is growing in many emerging economies.[61] Countries such as Korea, South Africa, and India have established currency futures exchanges, despite having some capital controls.

            Top 10 currency traders [62]
               
            • #156 Collapse

              y
              3 Market participants
              3.1 Commercial companies
              3.2 Central banks
              3.3 Foreign exchange fixing
              3.4 Hedge funds as speculators
              3.5 Investment management firms
              3.6 Retail forents
              6.1 Spot
                 
              • #157 Collapse

                Currency and exchange was also a vital and crucial element of t


                % of overall volume, May 2014
                Rank Name Market share
                1 United States Citi 16.04%
                2 Germany Deutsche Bank 15.67%
                3 United Kingdom Bar
                   
                • #158 Collapse

                  2 Market size and liquidit
                  Currency trading and exchange first occurred in ancient times.[6] Money-changing people, people helping others to change money and also taking a commission or charging a fee were living in the times of the Talmudic writings (Biblical times). These people (sometimes called "kollybistẻs") used city-stalls, at feast times the temples Court of the Gentiles instead.[7] Money-changers were also in more recent ancient times silver-smiths and/or gold-smiths.[8]

                  During the fourth century, the Byzantium government kept a monopoly on the exchange of currency.[9]

                  Government bond
                  High-yield debt
                     
                  • #159 Collapse

                    y
                    1.1 Ancient
                    1.2 Medieval and later
                    1.3 Early modern
                    1.4 Modern to post-modern
                    1.4.1 After WWII
                    1.4.2 Markets close
                    1.4.3 After 1973
                    Municipal bond
                    Securitizatio
                       
                    • #160 Collapse

                      $1.765 trillion in foreign exchange swaps
                      $43 billion currency swaps
                      $207 billion in options and other products
                      Contents [hide]
                      1 Historn
                      Stock marketontracts and are usually traded on an e
                         
                      • #161 Collapse

                        According to the Bank for International Settlements,[4] as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion.[5]

                        The $3.98 trillion break-down is a
                           
                        • #162 Collapse

                          variety of factors that affect exchange rates;
                          the low margins of relative profit compared with other markets of fixed income; and
                          the use
                             
                          • #163 Collapse

                            its continuous operation: 24 hours a day except weekends, i.e., trading from 22:00 GMT on Sunday (Sydney) until 22:00 GMT Friday (New York);
                            the of leverage to enhance profit and loss margins and with resp
                               
                            • #164 Collapse

                              losest to the ideal of perfect competition, notwithstanding currency intervention by central banks.

                              According to the Bank for International Settlements,[3] the preliminary global results from the 2013 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity show that trading in foreign exchange markets averaged $5.3 trillion per day in April 2013. This is up from $4.0 trillion in April 2010 and $3.3 trillion in April 2007. Foreign exchange swaps were the most actively traded instruments in April 2013, at $2.2 trillion per day, followed by spot trading at $2.0 trillion.
                                 
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                              • #165 Collapse

                                ct to account size.
                                As such, it has been referred to as the mar
                                   

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