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Currency Trading ForexLast update: Tuesday 22nd of May 2012
2. Futures To start with, countries such as the USA and the USSR are (or were in the latter's case) monetary unions. A single currency was or is used over enormous land masses incorporating previously distinct political, social and economic entities. The American constitution, for instance, did not provide for the existence of a central bank. Founding fathers, the likes of Madison and Jefferson, objected to its existence. A central monetary institution was established only in 1791 (modelled after the Bank of England). But Madison (as President) let its concession expire in 1811. It was revived in 1816 - only to die again. It took a civil war to lead to a budding monetary union. Bank regulation and supervision were instituted only in 1863 and a distinction was made between national and state-level banks. Currencies are always traded in pairs. The initial currency in the pair is called the base currency and the next currency is named quote or counter currency. The base currency is the denominator and the counter or quote currency when selling one unit of the base currency and the
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