The document discusses the history and development of foreign exchange markets from their origins in ancient times to the modern free-floating system that exists today. It provides information on currencies, exchange rates, functions of currency exchange markets, forex trading basics and tips, and foreign exchange risk. Major developments include the first money exchanges in ancient Middle East, the establishment of the Bretton Woods system in 1944 to stabilize currencies, and the move to freely floating exchange rates in the 1970s.

2. 1973 was the year where the foreign
exchange market (AKA Forex or FX)
originated. But as we all know everybody is
familiar with money since before even the
Pharaoh's time.

3. The first paper money was used by the Babylonians as
well as the use of receipts. However, the first and true
traders of money came from the Middle East; they
were the first to exchange one currency to another,
usually they exchanged coins from one currency to
another.
When the time of the Middle Ages came about
the need for exchanging currency became
neccessary. Aside from exchanging coins they
began exchanging paper bills.

4. During World War I the foreign exchange
markets were said to be pretty stable.
However, after World War I foreign
exchange markets became unstable and
the risk activity of the market was
increased.
The transition period for the Foreign
Exchange market occurred from 1931 to 1973.
The changes had a wide effect on the
economy of different countries.

5. In the hope of stabilizing the economy,
the Bretton Woods Accord was
founded. This gave the global economy
a chance to restore their environment
and make it stable. The Bretton Woods
Accord was active until the year 1971.
After long years of battle it finally
failed. However, Bretton Woods
accomplished what it set out to do and
that was making Europe and Japan's
economics stable.

6. Today, major currencies can now move
from one currency to another freely and
without restrictions. Anyone can trade with
anyone they wish to trade with.
Huge banking firms and individual
brokers came into existence. Occasionally
Central Banks intervene to move the supply
and the demand of price rates.
This new Foreign Exchange is what
they call a free-float system.

8. In economics, currency is
a generally
accepted medium of
exchange.

10. An exchange rate is the rate at
which one currency may be
converted into another, also
called rate of exchange of
foreign exchange rate or
currency exchange rate.

12. The foreign exchange rate is
simply the price of one currency in
terms of another, or how much
one currency can be exchanged for
another, in the same way that the
price of a good is determined by
how much money can be
exchanged for it.

14. The foreign exchange
department is responsible for
dealing with and managing
the purchase and sale of
foreign currencies and is a
highly specialized business.

15. Money Changing

16. The main function of a foreign
exchange department is to make
money for the bank by speculating
on whether a particular currency
will rise or fall against another.
Banks compete fiercely with each
other using experienced market
traders and millions of dollars or
currency equivalents are
exchanged daily.

17. Foreign exchange market

18. The foreign exchange
market (forex, FX,
or currency market) is a
form of exchange for the
global decentralized
trading of international
currencies.

19. Foreign exchange transaction is a type
of currency transaction that involves two
countries. Generally, a foreign exchange
transaction involves conversion of
currency of one country with that of
another. The conversion of currency in a
foreign exchange transaction can be
performed through :
1. buying or selling of goods and services
on credit;
2. borrowing or lending funds.

20. What Are the
Functions of
Foreign Currency
Exchange Markets?

21. Primary Function
The primary function of foreign
currency exchange markets is to
convert the currency of one
country into another currency.

22. International
Transactions
Foreign currency exchange
markets serve to facilitate
international financial
transactions.

23. Currency Value
The value of a country's
currency can influence
international trade, consumers'
purchasing power and
inflation.

24. Investment
Fund managers and investment
professionals use the foreign
currency exchange market to
help diversify their portfolios
and potentially increase their
returns.

25. Loss Protection
International companies that
work in multiple countries are
subject to gains and losses based
on exchange rate fluctuations.

26. Forex Trading
Forex, the word, means FOReign EXchange
market. This is an international market where
the buying and selling of money is done freely
and 24 hours a day. All forex trading involve the
buying of one currency and the selling of
another, simultaneously. Currency quotes are
given as exchange rates; that is, the value of one
currency relative to another. The relative supply
and demand of both currencies will determine
the value of the exchange rate.

27. The trading of foreign currency is the
exchange of money issued in one
country for money issued in another.
Foreign currency trading takes place in
the highly-solvent foreign exchange
market. Currencies are traded for one
another at exchange rates, which are
relative prices determined by market
supply and demand.

28. Here are some simple tips that will help
you increase your profit potential and
prevent you from losing money.
1. Select your first broker
2. Get a simple method
you understand
3. Trade the big trends and not
trade frequently

29. 4. Work smart and not hard
5. The formula to
success
Using Simple Method + With Discipline +
Control Risks = Forex Trading Success

30. Tips & Warnings
*Document your training objectives. This can
facilitate the process for everyone.
*Create and prioritize an outline of the demos and
videos to use as a checklist for each handler.
*Let handlers know it takes time to master the
forex system to keep them from being
discouraged.
*Foreign exchange trading is a high-risk activity
and should not be taken lightly.
*Monitor each handler individually, be available
for one-on-one interaction and encourage
questions for the best training results.

31. What is foreign
exchange risk?
Exchange risk is simple in
concept: a potential gain or loss
that occurs as a result of an
exchange rate change.

32. About BPI Forex Corporation
BPI Forex Corporation is a wholly-owned subsidiary of the Bank
of the Philippine Islands (BPI) established in response to increasing
foreign exchange demand following a liberalized foreign exchange
environment in the country. It delivers hassle - free service and
offers very attractive exchange rates for your currencies.

33. List of Currencies
Aside from the US Dollar, BPI Forex
Corporation transacts in the following
currencies:.
Australian Dollar
Korean Won
Bahrain Dinar
British Pound
Brunei Dollar
Canadian Dollar
Chinese Yuan
Euro
Hong Kong Dollar
Indonesian Rupiah
Japanese Yen
Malaysian Ringgit

34. New Zealand
Dollars
Saudi Riyal
Singapore Dollar
Swedish Kroner
Swiss Franc
Taiwan Dollars
Thailand Baht

35. Currencies Buying
(in Philippine
Peso)
Selling
(in Philippine Peso)
US Dollar 41.7500 42.5200
Euro 48.4700 52.5700
British Pound 61.7800 66.3000
Australian
Dollar
39.6400 44.1600
Japanese Yen 0.5084 0.5509
Canadian Dollar 38.4400 42.7600
Swiss Franc 39.8500 44.1700
Hongkong
Dollar
5.3300 6.0000
BPI FOREIGN EXCHANGE

36. Singapore
Dollar
32.6200 33.9500
Brunei Dollar 32.5400 34.0300
Thailand Baht 1.2900 1.5000
Indonesian
Rupiah
0.0042 0.0053
Saudi Riyal 10.9000 11.6000
Malaysian
Ringgit
12.9000 13.6700
New Zealand
Dollar
32.6400 34.1300
Bahrain Dinar 109.0400 113.5100