The foreign exchange market, also known as Forex or FX, is the largest financial market in the world. It deals with the exchange of currencies between countries and is used by businesses, governments, and individuals to conduct international transactions. The origins of Forex can be traced back to the early civilizations of the Middle East, where merchants exchanged coins of different countries to facilitate trade. However, the modern Forex market as we know it today has a more recent history.
The founder of Forex is not a single person, but rather a combination of events and advances in technology that led to the creation of the modern Forex market. The first step towards the creation of Forex was the establishment of the gold standard in the 19th century. Under this system, the value of a country’s currency was tied to the value of gold. This created a stable and predictable environment for international trade, as the value of currencies was fixed and could not be manipulated by governments.
The next important event in the development of Forex was the creation of the Bretton Woods system in 1944. Under this system, the US dollar was used as the international reserve currency, and other currencies were pegged to it. This system created a stable environment for international trade, but it also led to the accumulation of US dollars by other countries, which eventually led to its collapse in the 1970s.
The collapse of the Bretton Woods system led to the creation of the modern Forex market. In the 1970s, advances in technology, such as the computer and the internet, made it possible for individuals and businesses to trade currencies online. This led to the creation of Forex brokers, which allowed people to trade currencies from the comfort of their own homes.
One of the key figures in the development of the modern Forex market was Richard Donchian. Donchian was a commodities trader who developed a trend-following strategy known as the Donchian Channel. This strategy was later adapted for the Forex market and is still used by traders today.
Another important figure in the development of Forex was John Bollinger. Bollinger was a technical analyst who developed the Bollinger Bands, which are used to measure volatility in the market. These bands are still widely used by Forex traders today.
The 1990s saw the development of electronic trading platforms, which revolutionized the Forex market. These platforms allowed traders to access real-time market data and execute trades instantly. This led to an explosion in the number of Forex traders, as it became easier and more accessible to trade currencies.
Today, the Forex market is a global network of banks, brokers, and traders that operates 24 hours a day, five days a week. It is estimated that the daily turnover of the Forex market is over $5 trillion, making it the largest financial market in the world.
In conclusion, the founder of Forex is not a single person, but rather a combination of events and advances in technology that led to the creation of the modern Forex market. The gold standard, the Bretton Woods system, and the development of electronic trading platforms all played a role in the development of Forex. However, the modern Forex market would not exist without the contributions of individuals such as Richard Donchian and John Bollinger, who developed trading strategies and technical indicators that are still used by traders today.