Jump to content
  • 0
Sign in to follow this  
Elvis

How does copy trading differ from social trading?

Question

Help me understand how does copy trading differ from social trading.

Share this post


Link to post
Share on other sites

1 answer to this question

Recommended Posts

  • 0

Copy trading is a type of trading that allows traders to copy positions opened and managed by other traders in an automatic manner. Copy trading is a type of trading that will link several copying traders' funds to those of traders that already there. This is to means that any action that a single trader partakes will reflect in the account of the other trader, be it opening a position or closing a post following the proportion between copied investors accounts and those of the copied investors. The copying trader is presented with a chance to disconnect copied trades and solely manage them. Such traders also can close and copy relationships altogether. These types of investors are often given compensation by a flat monthly subscription fee taken from traders that are copying their form of trade. This kind of business has led to the development of what is known as an investment portfolio. With this, it is safe to say that a significant difference will come between copying and social trading in how the two to operate.

Social trading being a form of trading that will present investors the opportunity to observe trading behaviors of people they consider peers and see as expert traders and thus follow their strategies. This is to mean that social trading will include the various capabilities of having to connect with fellow investors using such platforms that are primarily social and yet be able to find potential trading candidates by viewing their performance statistics. Furthermore, some platforms in social trading will provide ways to be able to sort and rank traders following specific performance parameters and, in this way, can make it easier for traders to locate investors that may see potential in them. Methods used in the two forms of trading will create a big difference since those of social selling are way too social while those in copy trading are not considered.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...