Online earning is the new trend these past years with forex trading being the most popular option among others. People have gone from part-time forex trading to being full-time forex traders. It has become so popular due to the exchange of information through various platforms such as social media. From experienced to beginners, every trader will advise you to try forex trading and recommend you to check Forex Trading news and analysis. Now it cannot be as easy as it sounds right? Of course not, it is not as easy, however, there are some secret strategies used by the traders that make forex trading a lot easier than before, one of those has gained huge popularity called copy trading.
Copy trading is when traders copy the trades of other professional traders for themselves. Professionals do not allow that for free and charge the traders some fee for copying their trade. Still, many forex brokers avail the services of these experts for their benefit. Forex brokers provide social trading networks, copy trading software, and other services of the sort that meet your needs.
There are three ways copy trading can be used:
Manual– This one is also referred to as social trading where traders decide who to follow and which trades to copy. It needs efforts to some extent in choosing, monitoring, and copying the trade themselves but most traders use this to be in control of their own trades which is actually a good way to use this strategy.
Semi-Automated– This way allows you to make decisions regarding your choice of the trader by letting you monitor all the trading positions made by them. Then it is up to you which trader to copy yourself and which can take the lead by automatically copying their trade.
Automated– This way is the easiest one to follow where you just choose the trader to follow and which positions to act on, rest is taken care of by the service provided by your forex broker which automatically replicates all of your choices.
There are many benefits of copy trading such as ease of access, flexibility, and time-saving limits your risks and provides an opportunity to learn hand in hand with trading. But a successful trader does not completely rely on copy trading and just uses it as a strategy to make the process manageable and increase the profit rate.