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

278 views

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

In: 1

4 Answers

Anonymous 0 Comments

‌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

Anonymous 0 Comments

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.

Anonymous 0 Comments

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.

Anonymous 0 Comments

[deleted]