History of Trading. Trader – A 21st Century Profession
Trading (from the English trading – trading, and therefore a trader (from the English trading – trading) – a trader acting on his own initiative and seeking to profit directly from the trading process. In the modern sense, a trader is a person trading in securities, goods, currencies both in the exchange and over-the-counter markets, in particular, in the Forex market.
A trader can trade in financial markets both in his own interests and at his own expense, and in the interests of financial institutions or enterprises where he works.
The first exchanges – Antwerp and Lyon – appeared in the XVI century. They were a response to the need for merchants in financing, and for states to place bond loans. With the development of large companies, trading in shares or shares of these companies began to develop. The concept of “trader” is closely related to the emergence of the London Stock Exchange at the end of the 17th century.
The foreign exchange market, in contrast to the commodity and stock markets, has a relatively short history. Only in the early 1970s did states begin to abandon the gold standard, or to link their currencies to the value of a certain amount of gold. In 1976, the Bretton Woods system of the gold standard was replaced by the Jamaican currency system, which established a regime of floating exchange rates. Since then, currencies, in fact, began to act as an independent product.
For a long time, namely, until the end of the 80s of the 20th century, small investors and speculators did not have access to the foreign exchange market. To conduct trading, a solid capital was needed – from $ 100 thousand. This is the nominal value of one trading lot. Exchange trading still remains inaccessible to small traders, since, in addition to the cost of a trading lot, it is necessary to pay a very significant amount by signing a contract with the exchange. Since the early 1980s, some dealing centers in the UK and other countries have revived margin trading for private traders, thus giving them the opportunity to trade in financial markets without significant capital. In 1986, the central banks of most countries of the world officially recognized such a trading mechanism,
Trading Forex History in Russia
Exchange trade in Russia in one form or another existed from 1703 to the beginning of 1930. The revival of the stock market in modern Russia began in 1991. However, it remained virtually inaccessible to small investors, and there was no over-the-counter market for individuals as such.
In fact, the history of the Forex market in Russia began with the opening in 1994 of the TeleTrade office in Moscow. Then other Russian and international companies began to appear on this market. Nevertheless, for a wide range of private investors, the market remained inaccessible. The heyday of the market began in the 2000s with the development of the Internet and the advent of affordable trading platforms. It was at this time that the profession of a trader in the Forex market became widespread. Over the past few years, comprehensive training and investment training programs have been developed. Thus, it was in the 21st century that the profession of a trader went beyond the boundaries of a narrow professional circle and became available to almost anyone.
Interest in trading increases as the financial literacy of the population increases and the number of opportunities for additional income decreases. According to data for 2015, more than 460 thousand people have become active traders in Russia – clients of forex companies.
How to start trading?
Trading is a real profession. And, like any profession, he does not forgive amateurism. Understanding financial markets can and should be learned. Despite the apparent complexity, mastering even the most basic principles will help to understand not only the trading of financial assets, but also to understand how the financial markets work, how banks, investment funds and other key institutions of the industry work. So, you can learn to manage your finances, understand human psychology, gain confidence in yourself, and, possibly, earn capital for the embodiment of your ideas.
How to become a trader if you are determined to move towards the realization of your goals this way? First of all, study and study again. It is necessary to understand the basic concepts of the financial market, its tools, psychological aspects of trading. Do not neglect the additional training and communication with experienced traders. Often, training centers provide the opportunity to work as a trader with other students or even experienced practicing traders in intensive training courses.
At the same time, in order to fully work as a trader, it is necessary to maintain composure and endurance. Do not listen to others; look for solutions yourself. Rely on your experience and the experience of professionals you trust. As your professionalism grows and experience accumulates, a successful trader in Moscow has every chance of becoming a mentor to beginners, sharing with them their strategy and tactics of working in financial markets.
Remember, successful trading can be learned. But, as in any profession, there are good days and not very, even for professional players. The main thing is the gradual consolidation of a stable positive result while observing the rules and principles of our own trading strategy.
If you want to get training in trading, leave a request here .
- Forex Indicators (56)
- # Forex Strategies (36)
- # Earnings on Forex (35)
- # Practical Forex (23)
- # Forex for beginners (19)
- # Forex for dummies (16)
- # Technical analysis (11)
- #Trading (6)
- # History of world currencies (5)
- # Forex Brokers (2)
- # Fundamental analysis (2)
- #CFD (1)
To conclude a framework agreement, the client is obliged to confirm that he is familiar with the following risks associated with the conclusion, execution and termination of obligations under the framework and individual agreements:
1. The risk of loss to an individual as a result of changes in foreign exchange rates (currency risk).
2. The risk of loss to an individual as a result of non-performance, untimely performance or incomplete performance by the Forex dealer and (or) the bank in which the Forex dealer account is opened, financial obligations to such an individual in accordance with the terms of the Agreement and Separate Agreements (credit risk )