Social trading: concrete process explained by example

Even though most traders are now aware of what social trading is all about, this does not automatically mean that sufficient information is available on how a trading order in this area is carried out in practice.

First of all, of course, you need to decide on a particular social trading platform. Afterwards, you have the opportunity to find out about numerous professional traders there, for example, based on their previous successes or their classification in a career system. In the second step, you can decide on one or more professional traders. After that, you have to make another decision, which is whether you want to automatically follow and copy this trader on all his trading orders, or whether you want to set certain restrictions in this regard. In this regard, there is usually the possibility to make the following selections, among others:

•     Should be followed automatically?
•     Limitation of the total amount of the bet
•     Follow only for certain underlyings
•     Selection of maturities

Possibly in the early days of social trading, the follower is shown the trades of professional traders. As a rule, the follower can then decide manually whether or not to copy the corresponding trade order. In a second step, however, it is possible for many providers to automate this mechanism without any problems, so that in the future all trading orders of the professional trader are copied automatically under the mentioned selections.

What are the advantages of social trading?

The fact that social trading is becoming more and more popular in many trading areas is of course also due to the fact that the advantages of this system outweigh the disadvantages. The basic idea behind social trading is that the experience of professional traders, some of whom have many years of experience, is used so that beginners can also trade successfully and learn strategies as quickly as possible. Put simply, inexperienced traders benefit from the knowledge and the often very well thought-out strategies of professional traders, which is probably the biggest advantage of social trading as such. In addition, depending on the provider, there are other advantages in detail, which consist, for example, in the fact that the numerous professional traders at https://exness-ar.com/login/ are grouped into so-called career levels.

The follower can therefore see at a glance how successful the professional trader has been so far. Another advantage of social trading is, of course, that the follower does not have to work out his own strategies and on average (especially in the first weeks and months of his trading activities) makes fewer mistakes than if he were on his own. If social trading not only offers the possibility of copying the trading orders of professional traders, but also provides a communication platform, this is of course another advantage. Thus, with some providers, all traders can exchange and talk within a community, which is of course also part of the basic idea that social trading contains.

In summary, it is especially the following advantages from which speculative investors can benefit in social trading:

•     Easy copying of the strategies and trading orders of professional traders.
•     beginners benefit from extensive experience and knowledge of professional traders
•     communication in the course of a community
•     on average fewer mistakes and lower losses among followers
•     professional traders earn additional money

• Learning to state procurement on 44-ФЗ: how to get a certificate
• What is a leveraged share
• Savings or shares - Which investment is better?
• Exness Trader Review
• Asian tech stocks rise, while dollar rises amid expectations of Fed rate hike