The Bretton Woods monetary system refers to the international monetary system centered on the US dollar after the war. The General Agreement on Tariffs complements the Bretton Woods Conference in 1944, and together with the various agreements adopted by the Bretton Woods Conference, are collectively referred to as the “Breton Woods System.” That is, the multilateral economic system with foreign exchange liberalization, capital liberalization, and trade liberalization as its main content constitutes the core content of the capitalist bloc. It is a system that realizes American economic hegemony in accordance with the principles formulated by the United States.
The entire development history of the formation of the foreign exchange market-Yuhui International
 
The establishment of the Bretton Woods system promoted the recovery and development of the post-war capitalist world economy. Due to the frequent outbreak of the US dollar crisis and the US economic crisis, and the inextricable contradiction of the system itself, the system was declared ended in 1973. Instead, the floating exchange rate system was adopted.
The entire development history of the formation of the foreign exchange market
 
Initially, it was difficult to determine a fair exchange rate, but with the advancement of technology and communication technology, the exchange rate decision has become easier.
In the 1990s, thanks to the rise of computer and Internet technology, the banking industry began to create its own trading platform. These trading platforms are designed to provide real-time quotes to their customers so that they can execute transactions without interruption.
At the same time, some marketing machines with smart business acumen began to introduce Internet-based trading platforms to individual traders.
These marketing machines are what we know as “retail foreign exchange brokers.” The presence of these institutions makes it possible for individuals to conduct smaller foreign exchange transactions. Unlike an interbank foreign exchange market where 1 standard lot is 1 million units, retail foreign exchange brokers allow individual investors to trade a minimum of 1,000 units.
Retail Forex Broker
In the past, only large speculators and investment funds with capital were able to conduct currency transactions. However, thanks to retail foreign exchange brokers and the Internet, currency transactions are not difficult for individuals.
Since there is no threshold for entry, anyone can sign a contract with a foreign exchange broker and open a foreign exchange account for foreign exchange transactions. Brokers basically come in two forms:

  1. Market makers, which means that these institutions themselves can set foreign exchange trading prices;
  2. Electronic Communication Network (ECN) platform, ECN uses the best buying and selling prices provided by inter-bank market institutions.
    Market maker
    If you plan to go to France for a snail dinner. To facilitate your trip to France, you first need to go to a bank or a local foreign exchange window to exchange some Euros. As a counterparty to your transaction, you must agree to exchange your national currency for euros at the price they set.
    As with all business transactions, there is one thing in common here. That is the existence of selling points.
    For example, if a bank ’s buying price of EUR / USD is 1.2000 and their selling price is 1.2002, then their bid-ask spread is 0.0002. Although it seems small, when you make millions of foreign exchange transactions every day, then this is a considerable profit for market makers.
    You can say that the market maker is the cornerstone of the foreign exchange market. Retail market makers mainly inject liquidity into the market by packaging large contracts obtained from foreign exchange wholesalers into smaller contracts for sale. Without a retail market maker, individuals such as Zhang San or Li Si will find it difficult to conduct foreign exchange transactions.
     
    ECN platform
    Electronic communication network (ECN) is another name for foreign exchange trading platform, which can automatically match customers’ purchase and sale orders at the specified price. These prescribed prices come from different market makers, banks and other traders who use ECN. No matter when a certain purchase order takes effect, it can find the best purchase price on the ECN platform.
    Thanks to the self-pricing ability of traders, the commissions charged by ECN brokers are generally very low. Lower spreads and commission levels usually make it cheaper for traders to trade with ECN brokers.
    Of course, this is still not enough to understand the whole picture of the foreign exchange market. As we said, trading takes time, so, do you know when you should trade?