What Is Copy Trading?
Copy trading is an innovative way to trade in the financial markets. The idea of copy trading is very simple. This method involves copying trades initiated by other traders. The most important mission of copy trading is to help new and inexperienced traders to find their professional path in the market. Before we delve https://npfinancials.com.au/e into copy trading, you need to know what trading is and understand the parties involved in copy trading:
- Provider: The provider is also known as the signal provider. This person is actually a trader whose trading patterns are copied
- Copier: Also referred to as a follower, is a trader who is copying other trades
Copy trading is invaluable for beginner traders who don’t have enough time to learn and create custom trading strategies or do extensive research. In this case, one becomes a mere copycat who repeats the trading behavior of experienced traders. In simpler terms, copy trading is discovering successful traders who have a stable trading history.
Meanwhile, many experienced traders also open accounts on copy trading platforms. They try to gain new experiences and maximize their returns in the market by referring to the performance of Master Traders. As an alternative, users may manually copy transactions after receiving trade notifications.