Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Forex trading, short for foreign exchange trading, is the process of buying and selling currencies. It is one of the most significant and liquid financial markets in the world, with a daily trading volume exceeding $6 trillion. The forex market has a rich and complex history, shaped by global events, technological advancements, and evolving financial practices. This article delves into the complete history of forex trading, tracing its origins from ancient times to the modern-day digital era.
Forex Ancient and Medieval Periods
The history of forex trading can be traced back to ancient times when merchants and traders exchanged goods and currencies across different regions. The barter system was the earliest form of trade, where goods and services were directly exchanged. However, as societies developed and expanded, the need for a more efficient medium of exchange became apparent. Precious metals such as gold and silver began to be used as currency due to their intrinsic value and portability.
During the medieval period, the establishment of banks and the issuance of promissory notes marked significant advancements in trade and finance. Money changers played a crucial role in facilitating currency exchange, especially during the time of the Crusades, when European merchants and pilgrims travelled to the Middle East.
The Gold Standard Era
The 19th century saw the emergence of the gold standard, a system where a country’s currency was directly linked to a specific amount of gold. This system provided stability and facilitated international trade by ensuring that currencies had a fixed value relative to gold. The gold standard era was marked by the dominance of major European powers and their currencies, such as the British pound and the French franc.
However, the gold standard also had its limitations. It restricted the ability of governments to manage their economies during times of crisis, as the supply of money was tied to gold reserves. The gold standard began to unravel during the early 20th century, particularly after World War I, when countries suspended gold convertibility to finance war efforts.
The Bretton Woods System
In 1944, representatives from 44 countries met in Bretton Woods, New Hampshire, to establish a new international monetary system. The Bretton Woods Agreement aimed to create a stable and cooperative framework for global trade and finance. Under this system, the US dollar was pegged to gold, and other currencies were pegged to the US dollar. The International Monetary Fund (IMF) and the World Bank were also established to provide financial assistance and promote economic stability.
The Bretton Woods system brought about a period of economic growth and stability. However, the system faced challenges in the 1960s and early 1970s, as the US faced mounting economic pressures and trade deficits. In 1971, President Richard Nixon announced the suspension of the US dollar’s convertibility into gold, effectively ending the Bretton Woods system.
The Free-Floating System
The collapse of the Bretton Woods system led to the adoption of a free-floating exchange rate system, where the value of currencies is determined by market forces of supply and demand. This marked the beginning of the modern forex market, characterised by increased volatility and opportunities for speculation.
The 1970s and 1980s saw significant developments in forex trading, with the introduction of electronic trading platforms and advancements in technology. The liberalisation of financial markets and the removal of capital controls further facilitated the growth of forex trading. Major financial centres such as London, New York, Tokyo, and Frankfurt emerged as key hubs for forex trading.
The Digital Age
The advent of the internet in the 1990s revolutionised forex trading, making it more accessible to retail investors. Online trading platforms and electronic communication networks (ECNs) allowed individuals to trade currencies from the comfort of their homes. The rise of algorithmic trading and high-frequency trading further transformed the forex market, enabling faster and more efficient execution of trades.
Today, the forex market is a global, decentralised marketplace, operating 24 hours a day, five days a week. It is influenced by a myriad of factors, including economic data, geopolitical events, and central bank policies. The proliferation of mobile trading apps and the increasing popularity of cryptocurrencies have also added new dimensions to forex trading.
Conclusion about the History Of Forex
The history of forex trading is a testament to the evolution of global trade and finance. From ancient barter systems to sophisticated electronic trading platforms, the forex market has continuously adapted to changing economic landscapes and technological advancements. Understanding the historical context of forex trading provides valuable insights into its current dynamics and future prospects. As the world becomes more interconnected, the forex market will undoubtedly continue to play a vital role in the global economy.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
The oil & gas industry is a cornerstone of the global economy, with its health directly impacting currency markets. As a forex trader, understanding the trends within this industry can be crucial for making informed trading decisions. This article explores the key factors shaping the oil and gas landscape in 2024, providing valuable insights for traders.
Demand and supply dynamics
The global oil market is currently experiencing a tug-of-war between rising demand and restricted supply.
On the demand side, a post-pandemic economic rebound is expected to drive a modest increase of 1.1 million barrels per day (mb/d) in oil consumption in 2024. This growth is particularly fuelled by developing economies like China and India, where rising industrial activity is expected to lead to increased reliance on oil.
However, this positive demand outlook is countered by significant production cuts from the Organisation of the Petroleum Exporting Countries and allies (OPEC+). These cuts, amounting to around 1.5 million barrels per day, have been a major reason behind the 2023 surge in oil prices.
While US shale oil production is estimated to climb by 0.8 million barrels per day in 2024, it’s unlikely to fully offset the cuts from OPEC+, keeping a floor under prices in the near term. It’s important to note that a potential increase in supply from OPEC+ exceeding pre-pandemic levels in 2025 could significantly impact the price equation.
Real oil and gas demand and supply in 2024
Let’s take a look at the latest data from the International Energy Agency’s (IEA) March 2024 Oil Market Report.
In a positive surprise, global oil demand is forecast to rise by a higher-than-expected 1.7 million barrels per day (mb/d) in the first quarter of 2024 (1Q24). This upward revision is attributed to an improved economic outlook for the United States and increased bunkering activity (fuelling ships).
However, the IEA still expects overall demand growth to slow throughout the year, from 2.3 mb/d in 2023 to a revised estimate of 1.3 mb/d in 2024.
World oil production is projected to fall by 870 kb/d in 1Q24 compared to 4Q23. This decline is due to heavy weather-related shutdowns and new production curbs implemented by the OPEC+ alliance. Despite the initial drop, OPEC+ production is still expected to increase in 2024, albeit at a downwardly revised rate of 400 kb/d.
With the revised forecasts, global oil stocks are now expected to increase by 800 kb/d to 102.9 mb/d in 2024. This indicates a potential rise in global oil inventories throughout the year.
Price outlook & market volatility
Oil prices have experienced a significant climb in recent times, hovering around $90 per barrel compared to the lows of $60 per barrel seen in 2020. Due to the current supply-demand imbalance, analysts initially expected prices to remain elevated throughout 2024, with a potential reach of $100 per barrel.
However, a more nuanced picture is emerging. As of May 22nd, 2024, the price of West Texas Intermediate (WTI) crude oil sits at $77.91 per barrel according to Macrotrends. This suggests a price increase of around 9% for 2024 so far, with significant volatility throughout the year. The highs have reached $87.01 per barrel, but prices have also dipped as low as $70.38 per barrel.
Unforeseen circumstances can significantly impact prices. A global economic downturn could decrease demand and lead to a price correction. Conversely, major oil discoveries or disruptions in supply due to geopolitical events could cause prices to surge. Closely monitoring these developments remains crucial for traders navigating the oil market.
While the initial forecasts anticipated prices reaching $100 per barrel, current market conditions suggest a more moderate price range with ongoing volatility.
Industry trends & long-term outlook
Beyond the immediate price dynamics, several key trends are shaping the long-term outlook of the oil & gas industry.
Firstly, there’s a rising tide of mergers and acquisitions (M&A) activity. Strong cash flows, buoyed by high oil prices, and renewed investor confidence are driving this trend. Industry experts predict a 20% increase in M&A deals in 2024 compared to 2023, as companies consolidate to gain market share and improve operational efficiencies.
This consolidation could also lead to increased bargaining power with service providers, potentially impacting the overall cost structure of the industry.
Secondly, decarbonisation efforts are gaining significant traction. Oil and gas companies are increasingly investing in carbon capture technologies, with a projected global market size of $8.6 billion by 2025. These technologies aim to capture carbon emissions from power plants and industrial facilities, preventing them from entering the atmosphere.
Additionally, hydrogen production, a clean-burning alternative fuel, is attracting significant investments, with a projected market value of $18 billion by 2024. This focus on sustainability could influence long-term demand for traditional oil and gas.
While the transition to a low-carbon economy may take time, it’s a trend that traders should be aware of, as it could have a significant impact on the industry’s future.
Finally, advancements in technologies like generative AI are playing a role in optimising exploration, production, and logistics. These advancements are estimated to unlock an additional 5% of global oil reserves and could potentially lead to increased efficiency and cost reductions within the industry.
AI can be used for tasks like analysing seismic data to identify potential drilling sites, optimising well placement, and even predicting equipment maintenance needs. By leveraging these technologies, oil and gas companies can potentially operate with greater efficiency and profitability, even in a lower-carbon future.
The Conclusion For Oil & Gas in 2024
In conclusion, the oil and gas industry in 2024 presents a complex landscape for forex CFD traders. Understanding the interplay between demand, supply, industry trends, and potential geopolitical disruptions is crucial for making informed trading decisions. By staying updated on market developments, employing technical analysis effectively, and maintaining a disciplined risk management approach, traders can navigate the oil market with greater confidence.
The oil & gas industry is a cornerstone of the global economy, with its health directly impacting currency markets. As a forex trader, understanding the trends within this industry can be crucial for making informed trading decisions. This article explores the key factors shaping the oil and gas landscape in 2024, providing valuable insights for traders.
Demand and supply dynamics
The global oil market is currently experiencing a tug-of-war between rising demand and restricted supply.
On the demand side, a post-pandemic economic rebound is expected to drive a modest increase of 1.1 million barrels per day (mb/d) in oil consumption in 2024. This growth is particularly fuelled by developing economies like China and India, where rising industrial activity is expected to lead to increased reliance on oil.
However, this positive demand outlook is countered by significant production cuts from the Organisation of the Petroleum Exporting Countries and allies (OPEC+). These cuts, amounting to around 1.5 million barrels per day, have been a major reason behind the 2023 surge in oil prices.
While US shale oil production is estimated to climb by 0.8 million barrels per day in 2024, it’s unlikely to fully offset the cuts from OPEC+, keeping a floor under prices in the near term. It’s important to note that a potential increase in supply from OPEC+ exceeding pre-pandemic levels in 2025 could significantly impact the price equation.
Real oil and gas demand and supply in 2024
Let’s take a look at the latest data from the International Energy Agency’s (IEA) March 2024 Oil Market Report.
In a positive surprise, global oil demand is forecast to rise by a higher-than-expected 1.7 million barrels per day (mb/d) in the first quarter of 2024 (1Q24). This upward revision is attributed to an improved economic outlook for the United States and increased bunkering activity (fuelling ships).
However, the IEA still expects overall demand growth to slow throughout the year, from 2.3 mb/d in 2023 to a revised estimate of 1.3 mb/d in 2024.
World oil production is projected to fall by 870 kb/d in 1Q24 compared to 4Q23. This decline is due to heavy weather-related shutdowns and new production curbs implemented by the OPEC+ alliance. Despite the initial drop, OPEC+ production is still expected to increase in 2024, albeit at a downwardly revised rate of 400 kb/d.
With the revised forecasts, global oil stocks are now expected to increase by 800 kb/d to 102.9 mb/d in 2024. This indicates a potential rise in global oil inventories throughout the year.
Price outlook & market volatility
Oil prices have experienced a significant climb in recent times, hovering around $90 per barrel compared to the lows of $60 per barrel seen in 2020. Due to the current supply-demand imbalance, analysts initially expected prices to remain elevated throughout 2024, with a potential reach of $100 per barrel.
However, a more nuanced picture is emerging. As of May 22nd, 2024, the price of West Texas Intermediate (WTI) crude oil sits at $77.91 per barrel according to Macrotrends. This suggests a price increase of around 9% for 2024 so far, with significant volatility throughout the year. The highs have reached $87.01 per barrel, but prices have also dipped as low as $70.38 per barrel.
Unforeseen circumstances can significantly impact prices. A global economic downturn could decrease demand and lead to a price correction. Conversely, major oil discoveries or disruptions in supply due to geopolitical events could cause prices to surge. Closely monitoring these developments remains crucial for traders navigating the oil market.
While the initial forecasts anticipated prices reaching $100 per barrel, current market conditions suggest a more moderate price range with ongoing volatility.
Industry trends & long-term outlook
Beyond the immediate price dynamics, several key trends are shaping the long-term outlook of the oil & gas industry.
Firstly, there’s a rising tide of mergers and acquisitions (M&A) activity. Strong cash flows, buoyed by high oil prices, and renewed investor confidence are driving this trend. Industry experts predict a 20% increase in M&A deals in 2024 compared to 2023, as companies consolidate to gain market share and improve operational efficiencies.
This consolidation could also lead to increased bargaining power with service providers, potentially impacting the overall cost structure of the industry.
Secondly, decarbonisation efforts are gaining significant traction. Oil and gas companies are increasingly investing in carbon capture technologies, with a projected global market size of $8.6 billion by 2025. These technologies aim to capture carbon emissions from power plants and industrial facilities, preventing them from entering the atmosphere.
Additionally, hydrogen production, a clean-burning alternative fuel, is attracting significant investments, with a projected market value of $18 billion by 2024. This focus on sustainability could influence long-term demand for traditional oil and gas.
While the transition to a low-carbon economy may take time, it’s a trend that traders should be aware of, as it could have a significant impact on the industry’s future.
Finally, advancements in technologies like generative AI are playing a role in optimising exploration, production, and logistics. These advancements are estimated to unlock an additional 5% of global oil reserves and could potentially lead to increased efficiency and cost reductions within the industry.
AI can be used for tasks like analysing seismic data to identify potential drilling sites, optimising well placement, and even predicting equipment maintenance needs. By leveraging these technologies, oil and gas companies can potentially operate with greater efficiency and profitability, even in a lower-carbon future.
In conclusion, the oil and gas industry in 2024 presents a complex landscape for forex CFD traders. Understanding the interplay between demand, supply, industry trends, and potential geopolitical disruptions is crucial for making informed trading decisions. By staying updated on market developments, employing technical analysis effectively, and maintaining a disciplined risk management approach, traders can navigate the oil market with greater confidence.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
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Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
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