Mirror trading is a popular method of trading in forex markets that allows investors to select a trading strategy and effectively mirror executed trades.
While common in the forex space, mirror trading can also take place across equities or other asset classes.
Mirror trading is a popular form of investing, which can help individuals or entities expedite trading processes by relying on more fine-tuned methods or strategies.
Many brokerage accounts offer access to mirror trading, which can be selected based on personal trading preferences and tailored approaches.
How Does Mirror Trading Work?
Mirror trading in the forex space relies on matched preferences, ranging from risk tolerance, volatility, profits, etc.
This process involves the use of trading signals, which will be sent out by a strategy and automatically be applied to a client’s brokerage account.
Trading signals are delivered and executed automatically with both exit and entry points across many commonly traded currency pairs.
Mirror trading is popular for its hands-off approach by investors who do not need to intervene at all to execute even complex trading strategies.
Furthermore, clients can also engage in multiple strategies simultaneously, which makes this a particular draw.
Such methods are helpful in diversifying a trader’s portfolio, while also managing the level of risk.
Mirror trading differs notably from copy trading. The methods differ by virtue of how accounts are synchronized.
For example, in copy trading, traders directly copy the moves of individual traders.
By extension, mirror trading decisions are based on algorithms from trading patterns from multiple traders or entities.
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