Quote:
Originally Posted by HardDrive
So we had dinner with friends tonight, and the guy is super excited about currency trading. His highly profitable consulting business pretty much evaporated during covid. So evidently he has taken up currency trading. He was very excited to show us his office setup, with lots of complex graphs.
I understand how currency trading works. What concerns me was his use of credit. It sounds like he is margin trading, and in a big way. Major currencies don't 'fail' the same way a company could, but aren't you still opening yourself up to huge losses if you leveraged up 50:1? He's day trading, so guess he is only incurring the risks of a single day at a time.
Are there individual investors out there making at currency traders?
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Like any trade he can set up stops to limit losses.