What Is the Concept of CopyTrading?

CopyTrading is a term that allows the traders to copy the trading style and strategies of others. This is highly beneficial for the new and inexperienced trader to take a position in the Forex trading market. In this method, the traders can link their profile with others and copy their market positions.

The Emergence of CopyTrading

In this type of trading, traders can copy other users’ trading strategies by adopting their trading portfolio. In this cloned portfolio, users invest an amount they specify, which is distributed equally as a percentage across the different products in the portfolio.

However, there can be both risk and high margin of profit with the CopyTrading. In CopyTrading, you have to follow your copy trader no matter what they do. If they open a new account and start trading their money, you will also need to do that. If they win money, you will even win, and if they lose money, you will also lose.

CopyTrading in Few Steps

Social selling can be performed easily in a few steps. Traders who want to copy a portfolio need to select the “People” item from the menu bar. One can get the option on the left side. You will find out a list of the traders whose strategies can be cloned. There is also an option of sorting the traders according to different search criteria.

From the list, you can check out the trader’s profile name and image, his average profit or loss over the past few months, and the risk rating of his trading strategy. From there, you have to find out an appropriate one for yourself. After deciding on an appropriate trader, clicking on his button will ask for the amount to be invested in the portfolio.

Mimicking Other Traders’ Strategies

The traders can follow the development of investment in detail at any time. Trader’s portfolio button opens an aspect and complete list of the financial products that the trader is currently trading. The course developments are displayed in real-time in this menu window. Individual positions can be closed here anytime. This allows customers always to adapt the copied portfolio to their own wishes and thus refine the trading strategies to their own needs.

One of the most important things one should consider in choosing an online broker is the user-friendliness of the trading platform offered. After all, customers shouldn’t spend their valuable time learning to understand an unnecessarily complicated trading platform.

Experience with different online Forex brokers shows that the online broker is pursuing its concept, which is unusual in the industry. The result is a transparent platform in an attractive blog design, which should not appeal to every user. Experienced users could put the change off at the start.

Is CopyTrading Reliable?

One of the frequently asked questions about CopyTrading, is it reliable? However, different researches and studies have conducted to become sure if it’s trustworthy or not. Well, choosing the trader carefully, based on their strategies and success rate, one can make an outstanding profit from this approach.

So, to choose or not to choose the CopyTrading strategy is ultimately the personal preference of the traders. But carefully choosing the trader, learning to trade, and making a profit is always possible.