The market of currencies known as Forex has not always been and existed as we know it today. The high volume, high leverage, 24 hours a day trading market that we know today is relatively new and has its origins in the early 70's when the Breton Woods agreement was abandoned.
Breton Woods agreement was a result of the second world war and it stated that foreign currencies would have a fixed value against the U.S dollar. The main reference for value considered by this agreement was gold, i.e. gold was king those days and the U.S dollar had a fixed value of $35 per ounce of gold.
This state of things in the world economy didn't allow a free trade market for currencies as we know it today. As stated above the exchange rates had mostly a fixed value and there was little room for trading and speculation. In short there was practically no currency market available for the public .
But by the end of the 1960's this Breton Woods agreement began to lose acceptance, mainly by the U.S government, and in 1971 the U.S dollar was not longer convertible to gold, Breton Woods was over and a forex market began to emerge; in its first phase, between the United Stated and Europe.
By the end of the 70's and early 80's the advances in telecommunication and computer power opened the gates of the Forex market to Asian time zones. Consequently a global forex market began to consolidate. At the time the value of foreign currency exchanged equally $70 billion dollars daily.
In the 90's we had the internet boom, pc and laptops were made more accessible to wide sectors of the society, mainly in the industrialized world but without leaving too far emerging economies, and by now we have strong Forex market that can be accessed from anywhere in the world with many brokers online and a total trading value close to $1.5 trillion daily.
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