Copy trading – also known as Social trading – is a novelty that is gaining more and more popularity in the financial world, especially because it guarantees an opportunity for growth to new traders and to anyone who wants to start investing in Forex and online.
In a nutshell, copy trading allows you to literally copy the signals and orders of other traders. A very convenient solution for novice investors, who can thus learn from the best traders with greater earning possibilities. Despite this, copy trading can be an interesting alternative even for the most experienced traders who want to diversify their portfolio and follow investors who have achieved excellent results.
The difference with mirror trading is that while copy trading allows you to copy the operations of another trader, mirror trading copies a well-defined strategy of a company.
The trader who opens a position decides whether or not to give others the possibility to copy it, thus connecting to a system that allows you to copy the operations automatically or to have a first input from the person who wants to take advantage of copy trading.
Through this strategy, it is possible to imitate the trades of other investors, following their moves step by step, on stocks and currencies. You may also decide to “follow” signals and trading ideas coming from more than jusr one trader.
In your investment portfolio you will have the potential to replicate different signals thus emulating the performance of others and, obviously, their results. Furthermore, we will be able to choose between multiple signals and create a personal replica wallet. Obviously, through copy trading you will simulate the good performances of those you want to imitate but, consequently, also all their losses.