The Forex Market and Fraud: Understanding the Basics

  The Origins of Forex Trading:   The concept of forex trading dates back to ancient times when traders started exchanging coins from different countries. In 1944, a postwar forex system was established during a conference held at Bretton Woods, New Hampshire. This system remained intact until the early 1970s.   Changes in the Forex System:   The Bretton Woods conference led to the creation of the International Monetary Fund and an agreement that fixed currencies to gold values or the U.S. dollar. This system was known as pegging. However, in 1971, due to currency rate fluctuations, the gold standard was abandoned, and currencies were allowed to float freely. Since then, the forex market has become the world's largest financial market.   Structure of the Forex Market:   Unlike traditional markets, the forex market does not have a central exchange or trading floor. It operates electronically among a network of banks continuously for 24 hours. It is considered an