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Corporate Finance, DeFi, Blockchain News

How to copy successful strategies traders?

Today, the modern trend in exchange trading is extremely popular — trade copying, which allows you to make a profit on the currency or stock market easily. Its name speaks of the ability to copy transactions of successful traders by connecting to a certain service. Thanks to this method, beginners may not trade on their own but get a chance to earn money using the experience and knowledge of professionals.

What is copy trading?

Copy trading is also called earnings for the lazy. The term itself and the provision of services according to this principle appeared relatively recently, although the concept arose back in the 90s of the last century as an idea of repeating positions.

Progress embodied the idea of the natural development of this method of trading in an automatic version:

• With the advent of algorithmic trading in 2005, the system for copying trades was formalized.

• By 2010, the described strategy has become widespread, and brokers often offered copy trading services on financial platforms.

• The essence of the method is to copy all transactions of the selected trader in real-time.

Any of their steps entail a change in your account. You only independently set the amount for investment. You cannot influence the course of operations, only open and close new transactions. The result will be the same as that of the main player.

How does copy trading work?

You can use a forex copier or other system and follow the steps:

1. You should start by choosing an experienced trader. You need to subscribe to them, taking into account the requirements of a special platform for searching for traders and copying deals.

2. Determine the amount of investment. Its minimum threshold depends on the selected platform. It is better to divide finances between several merchants – the risks will decrease. After confirming the choice, the money will be distributed among the strategic managers.

3. Automatic copying of the trader's actions is carried out on the platform and reflected on your trading account.

4. Increasing deposits or changing traders for copying is in your power. You can copy absolutely all operations or set a limit, for example, by the number of daily transactions.

5. The commission fee for copied trades is taken by the broker as standard. The platform has a percentage of the subscription price, and the main player is a share of the profits.

Any markets are suitable for copy trading. The method allows you to save time and not worry about the lack of technical skills. Perhaps, someday, they will start copying you too.

Lundi 12 Septembre 2022