How to Go about Forex Copy Trading – A Few Good Tips
Saturday, May 23, 2015, 6:00 AM | Leave Comment
The international investment scenario has seen various changes during the last few years. Much of the popularity has been gained by a new phenomenon called copy trading. This is also known as forex copier.
Ever since the introduction of copy trading, it has become important for you to understand this phenomenon and practice it.
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Copy Trading
A strategy like copy trading indulges in copying the moves of trading adopted by the other traders. Social trading has no leaps and bounds and it continues to grow. Social media networking turns successful and merges with traditional forex trading.
It has become all the more important for you to understand the steps of copy trading and why you should practice it.
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Forex Social Trading
Copy trading is an integral part of social trading. The importance of social media has increased during the last few years.
The origin of social media has given birth to a few immensely popular platforms like twitter and face book.
Social trading is all about informing various members of your contact list about the different investments. Forex copy trading is provided by numerous online brokers that explored this opportunity.
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Meaning of Trade Book
The traders that you wish to follow are mentioned in a digital index called trade book. Such kind of a trade book is offered by zulutrade. The trades made by them can be copied by you. The step of copying a trade is referred to as copy trading.
These days, your account allows you to copy multiple trades from multiple traders. You may do so automatically or immediately with the help of a certified broker.
The amount of money for which you wish to copy trade and the trader with whom you wish to do it can now be chosen by you.
All information pertaining to a trader is delivered by the broker; this allows you to check the outcome of a trader over your chosen period of time.
The trader that fits in with your profit or loss ratio is easily determined by you. In order to spread the risk, you must copy trade with a minimum of 4 to 5 traders that you’re following.
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Benefits of Forex Copy Trading
The biggest advantage of forex copy trading is that the trades which are made by the trader on your account are copied by the broker.
Again, your information concerning trades and money remains secured from being copied to another account before seeking your permission.
You’ll have the option of choosing a different trader and un-following your current trader in case you aren’t satisfied with the latter. You’ll also have the option of staying anonymous.
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Copy trading also offers all of the following benefits –
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There’s no reason for you to become any professional trader
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Acquire suggestions from the most experienced traders
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Follow multiple traders for restricting your risk of monetary losses.
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Traders can earn more depending on the movement of stocks
The money making system of “going short” can be availed by a beginner in a similar way to that of retirement funds and banks.
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When it comes to social trading you may utilize software like MT4i Trade Copier. On the other hand, Zulutrade is considered to be a quality platform for forex trading due to its multiplatform software.
Various brokers are being supported by these platforms around the globe as they are allowed to copy trades to their accounts without bearing any extra charge.
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