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History and Origins Facts of Forex Trading – An Academic Guide

Forex, or foreign exchange, is one of the largest and most liquid financial markets in the world. It began in the 1970s after the collapse of the Bretton Woods Agreement which established a system of fixed exchange rates for participating countries. This system was replaced by free-floating exchange rates, which are determined by market forces and float freely depending on current market conditions and supply and demand. In this market, countries and businesses can buy, sell, and trade different currencies, speculating on the directions of their respective currencies. Today, Forex is a popular investment opportunity for many investors and traders who are looking to diversify their portfolios and take advantage of the potential profits from the world’s foreign currency markets.

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