Kayla Long
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Federal Reserve History. "Creation of the Bretton Woods System." The arrival of the internet made instant trading possible. Traders, no matter where they were around the world simply needed to switch on their PC and log in to the platform to get started. It is now that innovative trading technologies such as the MetaTrader platforms have entered the market. The danger arises when a corporation conducts financial transactions or keeps financial records in a currency other than the one on which it is based. A Canadian company doing business in China, for example, is subject to foreign exchange risk because it accepts financial transactions in the Chinese Yuan and presents its financial results in Canadian dollars. In the 1990s, the currency markets grew more sophisticated and faster than ever because money – and how people viewed and used it – was changing. A person sitting alone at home could find, with the click of a button, an accurate price that only a few years prior would have required an army of traders, brokers, and telephones. These advances in communication came during a time when former divisions gave way to capitalism and globalization (the fall of the Berlin Wall and the Soviet Union).
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