Global Forex Capital Markets

Forex Capital Market Opportunities

There are very few investment opportunities that hold the kind of potential that can be found in the foreign exchange, or forex market. The past decade of robust growth have fashioned the forex capital market into the largest financial market in the world with over $2 trillion USD traded daily. Tracing the history of the forex capital markets back in time, several efforts were made to stabilize the world economy in the wake of World War II with varying results. One well-known attempt, the Bretton Woods Accord, pegged all other currencies to the value of the U.S. dollar, which, at the time, was the most stable currency in the world. Additionally, the U.S. dollar was pegged to the value of gold and the combination of these two efforts brought relative stability back to the forex market and the world economy for awhile.

The Forex Capital Markets

In 1978 the free-floating system was officially mandated largely due to the break down of two independent agreements, which like the Bretton Woods Accord, sought to keep currency values pegged at a more constant level. Thus the forex capital markets was enlivened by the fact that foreign currency values could now fluctuate to a greater degree. These days, the major currencies are allowed to move independently of other currencies and this new approach is really responsible for the host of new opportunities that now exist in the forex capital market.

Forex Market Supply and Demand

Like any other market, the forex market is driven by the principles of supply and demand. There are times when a particular country will intervene to move currencies to their desired levels, however, the free-floating system is the rule of the day for most of the major world economies. This situation creates great opportunities in the forex capital market, which you can take advantage of with help from Global Forex Trading. Start exploring the opportunities the forex market has to offer with a free demo Forex trading account from GFT.

Additional Forex Market Information

If you would like to learn more about the long and vibrant history of the forex market, or if you would like to begin benefiting from the foreign currency trading opportunities available today, please use the following link: Global Forex Trading Forex Market.