Copy Trading 

Do you have limited time and a passion to trade? Look no further with copy trading abilities available by copying other traders positions.

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Copy trading is popular with traders who lack expertise in a specific market and those who have limited time to commit to trading. Copy-trading in forex means that a trader can simply copy another trader’s positions rather than scanning the fast-moving forex markets themselves.
Copy-trading works by relying on social networks and social trading systems. When one trader opens a position, they can broadcast this information to other traders on the network, who can then decide whether they want to open the same position, or alternatively, their automated trading systems can do it without additional input from the trader.
Usually, the primary trader who broadcasts their positions has experience in the underlying market and the copy traders might be entirely new to the financial markets. Forex copy trading is a popular strategy because price movements are often small but frequent, and constant monitoring is required.
You may ask what are the benefits and trade-offs.

Benefits

  • Copy-trading enables you to diversify your portfolio into markets that you are unfamiliar with but want exposure to
  • Through copy trading, you can access another trader’s expertise or make the most of seasonal trends that you wouldn’t usually consider as a potential opportunity
  • With copy trading, you can make the most of your time by basing your decisions on those of traders with proven track records

Trade-offs

  • Copy-trading can provide little incentive for traders to do their own research and learn about the markets
  • Copy-trading does not eliminate risk, which means sometimes the copy trading notice boards could be used by traders that are seeking to influence a market’s price for their own financial gain.
  • While copy trading can help you when you first get started, it is not the only trading strategy available. Potential profits with little work might be enough for some people.
  • Before you start copy trading, you should do your own market research. Speak with a Kitco Market specialist who can advise you in getting started on the right foot.