Foreign exchange traders look at the various factors that influence local economies and rates of exchange, and then take advantage of any misevaluations of currencies by buying and selling in different foreign exchange markets.
Summary
A foreign exchange trader manages an account, looks at reports, reads the press from various countries, and most importantly, spends time on the phone. He may spend up to 80 percent of the day on the telephone and working at his computer. Traders must act fast to exploit valuation differences: "You've got seconds to decide how millions of dollars should be spent," said one trader, “so you have to have confidence." Confidence ranked second right after "guts" in qualities important in new traders.
The foreign exchange market includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. As a result, foreign exchange traders are employed by these various organizations.
Educational Requirements
Mathematics, economics, and statistics majors have a distinct advantage in applying for positions in this field, as do history majors whose coursework included economics. A bachelor’s degree is required. Any experience in a trading environment is valued, as is any work that demonstrates the ability to work hard, make fast and accurate decisions, and manipulate numbers. Many employers appreciate study abroad, international work experience or fluency in a foreign language.
Many employers appreciate study abroad, international work experience or fluency in a foreign language. As a number of entry-level positions are account representatives as opposed to trading positions, candidates who have good interpersonal skills and access to capital may have an advantage.
Salary Information 2023
According to salary.com, the average salary for a Foreign Exchange Trader in 2023 was between $82,670.
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Information retrieved from We Use Math: Foreign Exchange Trader and The Princeton Review: Foreign Exchange Trader.
