Copy Trading

Copy Trading allows individuals in the financial markets to automatically copy positions opened and managed by other selected individuals. This can take shape across virtually any asset class, including equities, commodities, or foreign exchange.Copy trading differs notably from mirror trading, which is defined as a method that allows traders to copy specific strategies. Rather, copy trading links a portion of the copying trader's funds to the account of the copied investor.Consequently, any trading action taken thereafter by the copied investor, i.e. opening a position, assigning Stop Loss and Take Profit orders, or closing a position, are also executed in the copying trader's account.This is done proportionally between the copied investor's account and the copying trader's allotted copy trading funds.The copying trader also typically retains the ability to disconnect copied trades and manage them independently, as well as terminate the copy relationship altogether. Most commonly, copied investors are often compensated by flat monthly subscription fees on the part of a trader seeking to copy their trades.Proliferation of Copy TradingCopy trading has grown in popularity in recent years and led to the development of new types of investment portfolios.This includes People-Based Portfolios or Signal Portfolios. Since 2010, copy trading has become an increasingly more widespread and popular feature amongst online brokers.The appeal is obvious for newer or less experienced traders, who are able to benefit from the trading decisions of investors whom they deem successful or more experienced.Copy trading draws similarities to social trading, which usually includes the ability to connect with other investors using the platform in social ways. This includes comments, likes, link sharing etc. as well as find potential copy trading candidates by viewing investors' performance statistics.Some platforms also provide ways to sort and rank traders according to certain performance parameters, thus making it easier for traders to find potential investors to copy.
Copy Trading allows individuals in the financial markets to automatically copy positions opened and managed by other selected individuals. This can take shape across virtually any asset class, including equities, commodities, or foreign exchange.Copy trading differs notably from mirror trading, which is defined as a method that allows traders to copy specific strategies. Rather, copy trading links a portion of the copying trader's funds to the account of the copied investor.Consequently, any trading action taken thereafter by the copied investor, i.e. opening a position, assigning Stop Loss and Take Profit orders, or closing a position, are also executed in the copying trader's account.This is done proportionally between the copied investor's account and the copying trader's allotted copy trading funds.The copying trader also typically retains the ability to disconnect copied trades and manage them independently, as well as terminate the copy relationship altogether. Most commonly, copied investors are often compensated by flat monthly subscription fees on the part of a trader seeking to copy their trades.Proliferation of Copy TradingCopy trading has grown in popularity in recent years and led to the development of new types of investment portfolios.This includes People-Based Portfolios or Signal Portfolios. Since 2010, copy trading has become an increasingly more widespread and popular feature amongst online brokers.The appeal is obvious for newer or less experienced traders, who are able to benefit from the trading decisions of investors whom they deem successful or more experienced.Copy trading draws similarities to social trading, which usually includes the ability to connect with other investors using the platform in social ways. This includes comments, likes, link sharing etc. as well as find potential copy trading candidates by viewing investors' performance statistics.Some platforms also provide ways to sort and rank traders according to certain performance parameters, thus making it easier for traders to find potential investors to copy.

Copy Trading allows individuals in the financial markets to automatically copy positions opened and managed by other selected individuals.

This can take shape across virtually any asset class, including equities, commodities, or foreign exchange.

Copy trading differs notably from mirror trading, which is defined as a method that allows traders to copy specific strategies.

Rather, copy trading links a portion of the copying trader's funds to the account of the copied investor.

Consequently, any trading action taken thereafter by the copied investor, i.e. opening a position, assigning Stop Loss and Take Profit orders, or closing a position, are also executed in the copying trader's account.

This is done proportionally between the copied investor's account and the copying trader's allotted copy trading funds.

The copying trader also typically retains the ability to disconnect copied trades and manage them independently, as well as terminate the copy relationship altogether.

Most commonly, copied investors are often compensated by flat monthly subscription fees on the part of a trader seeking to copy their trades.

Proliferation of Copy Trading

Copy trading has grown in popularity in recent years and led to the development of new types of investment portfolios.

This includes People-Based Portfolios or Signal Portfolios. Since 2010, copy trading has become an increasingly more widespread and popular feature amongst online brokers.

The appeal is obvious for newer or less experienced traders, who are able to benefit from the trading decisions of investors whom they deem successful or more experienced.

Copy trading draws similarities to social trading, which usually includes the ability to connect with other investors using the platform in social ways.

This includes comments, likes, link sharing etc. as well as find potential copy trading candidates by viewing investors' performance statistics.

Some platforms also provide ways to sort and rank traders according to certain performance parameters, thus making it easier for traders to find potential investors to copy.

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Friday, 13/05/2022 | 08:37 GMT-0
13/05/2022 | 08:37 GMT-0