A new approach to investing has been gaining popularity among beginners and mature traders. Investors pick copy trading to acquire experience through watching the work of other traders. For others, it saves time. The reasons differ but the goal is to achieve better trading results.
InstaForex Copy trading is similar to social trading when deals of one trader are copied to an account of another who is a follower. This can be done manually where the follower can choose which deals to copy. Or it can be done automatically by setting certain copying parameters.
Theory is a significant element in learning the craft. However, this approach allows traders to practice and acquire trading skills easily. Beginners can pick up useful techniques while watching experience traders at work.
Transparency is also a key element of copy trading. Traders who allow others to copy their deals provide detailed statistics on their performance. InstaForex has compiled a list of Top 5 copy traders who are selected based on several criteria including account profitability and aggressiveness of strategy.
Copy-trading may ease things for new traders and save time, however, it does not eliminate the risk involved with trading in general.
All investment strategies come with the risk of losing money, even for experienced traders. The market is unpredictable in nature and no one can predict it with complete accuracy. Followers should always conduct their own analysis of the market situation before they invest their money.
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Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.