Venturing into the world of trading might feel overwhelming, as the field is quite complicated unless you have cracked the code yourself. Through copy trading, you can immediately copy the positions taken by another trader. You choose the amount you want to invest and just replicate whatever they do in real-time; as soon as the trader executes a trade, so will your account. You get the same returns on each trade as your chosen trader, and you don’t have to make any decisions about the trades.
One of the simplest ways to benefit from another trader’s in-depth knowledge is by copy trade. You can still end deals and start new ones whenever you choose. But if you copy another trader, you might be able to profit from their expertise.
How is copy trading carried out?
Using the tools offered by different platforms to filter the available traders, choose a trader to follow who most closely matches your objectives. It might be their popularity, success, level of risk, total quantity of funds they handle, or return on investment. It’s entirely up to you to decide which of these, or a combination of them, you want to focus on.
Determine your investment amount and the distribution of it across the managers. If you have picked more than one trader to replicate, decide how much to assign to each trader to maintain balance and avoid putting all your eggs in one basket. The duplicate trading platform will then instantly replicate every position held by the chosen trader in your trading account.
If you are pleased with the trader’s performance, add more money. Alternately, limit the amount of money you invest in a single trader to lessen your exposure to them and maintain portfolio diversification. Remember that you will need a different Invest account for each trader you choose to follow.
Except for the fees you pay the strategy manager whenever they are profitable, there are no additional costs associated with using the copy trading feature. Copy trades will be subject to any brokerage costs that would be charged for a typical trade.
Copy trading has grown in popularity because of its benefits:
Accessibility
A fun and accessible way to get started in trading is through copy trading. This is now readily available thanks to significant advancements in social trading and the numerous social trading networks.
Improve your own trading skills
Through copy trading, you can follow the trading activities of seasoned traders, some of whom have years of experience and knowledge. By imitating their success and creating your own trade, you can learn from others’ trading.
Diversification
With the enormous selection of trade strategies available, you can now distribute your portfolio among many providers across various assets. In various market conditions, you can also make money.
Ask yourself
By drawing on a wealth of international knowledge, you may gain the visibility you desire on your terms.
Extra time
As someone you’ve picked to keep an eye on the markets, this frees up time for your other interests.
