Social Trading Is The Future Of Binary Options
Copy trading and social trading are the newest trends in binary options. Learn the difference and why you may want to follow along.
The Hottest Trend In Binary Options
Copy trading is the newest trend in binary options. It is a great way for new and old traders alike to benefit from the experience of others. In essence it is the combination of trading with social media, when you like someone and follow them their trades become yours, when they profit you profit.
The caveat is that copy trading is just as risky as any form of trading, past performance does not guarantee success. You have to be careful when choosing a platform as well as the traders you follow. The first and most important thing to understand is that all copy trading is not the same. Each copy trading platform has its own unique qualities.
The most basic difference in platforms is how trades are presented. The most common type you will run across is based on a leader board. Leader boards rank traders according to a variety of criteria including overall win rates, asset traded, frequency of trading and others. When you follow a trader you follow all the trades that person makes from that point forward. As a trader you have some control over your account including the size of trades made and how long you follow a given trader.
The second type of copy trading is what I call spot copying although I don't know it has an actual name. This is when the platform lists trades in a feed as they happen. Trades are listed with the originators name and some statistics such as overall win rate. If you like the trade and want to take it you are then prompted to enter one. The functional difference being that with the first style trades are place whether you are logged into your account or not, with the second style you have to choose the trades you want to take. Both have great appeal and can be used together.
Social Trading Takes It To A Whole New Level
Social trading incorporates copy trading but is much much more. The purpose of social trading is too learn if you are new, educate if you are experienced and gain insights on trading regardless of skill level. True social trading includes full profiles, forums, the ability to copy and more.
The benefit of a profile and a forum is that you can get to know who it is you are following. This may not seem like a big deal but would you feel better taking financial advice from some random computer image or an actual person you can talk to?
The forums are my favorite part of social trading. This is where you really get to know people. You can ask questions about why a trade is being made, what signals and indicators are being used and how this is impacting the market. Of course, not everybody is interested in learning and that is OK, because you can still copy trades.
You are social trading right now whether you believe it or not. This very website is host to a great forum and home to two great traders dedicated to providing sound advice. You can ask questions, learn how they trade or even follow along with the free signals they give. The end result, regardless of where you go and who you follow is greater enjoyment of trading, a deeper understanding of the market and a significant increase in your net profits.