eli5: What does it mean to be a forex trader?


My uncle says he trades forex for a living. What exactly does this mean/what exactly does he do?

In: 1

He buys foreign currency when it’s weak and sells it when it’s strong, so if he bought €2 for $1, he’d sell his €2 down the line for $1.50.

Margins are a lot tighter and money used is a lot higher of course.

Forex is short for foreign exchange.

Forex stands for foreign exchange. It basically means trading currencies for other currencies and making money on changes among exchange rates. But $100k worth of Yen at 110:1 ratio today, sell in a few days when you can sell 100 Yen for each $1.

‌A forex trader is a person that trades currencies in the financial markets. They usually choose to trade due to market volatility or foreign exchange rates.

To be a forex trader, you need:

An active forex account

A computer with internet access

Metatrader 4 or any other trading software installed on your computer

Patience and Discipline