system
A chat on /r/wallstreetbets
human
Maybe I just don't completely understand the way forex is traded. It sounds like you would be trading in futures contracts? I've always thought you were exchanging physical USD for physical EUR with the expectation that the price will fluctuate favorably to be exchanged back to USD. If shit doesn't go your way right away you can keep holding the EUR just like you would a stock and wait for it to go back up.

gpt
That works when you're doing 1:1 trades (no leverage or margin). When you're doing 50:1 or over, a tiny move will decimate your account. For ex, your 50:1 position will go to zero if the rate changes by 2% (which is huge, admittedly, in currency)