Please open your history books to the battle of Foreign Exchange.
Just kidding! Unlike most history lessons, this one doesn’t start in the days of yore. While the stock market has a centuries-long history, forex is a new market. While the concept of people converting currency for financial gain has been around since nations first started minting their currencies, the more structured forex market of today is a recent innovation.
It was the accord at Bretton Woods in 1971 that led to major currencies being able to float freely against one another. However, the value of each currency is unique and variable, leading to the need for foreign exchange services and trading.
Most of the forex market trading is done by commercial and investment banks on behalf of clients. Additionally, there are also speculative opportunities for trading currencies against each other, either for professional or individual investors.