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Copy trading
Social Trading 's been around for several years now, with well-known platform ZuluTrade being setup back in 2006. Yet it's only more recently that's has begun to take off hugely. For example ZuluTrade now supports a total of 65 different brokerages and it has grown into a huge company.

Copy trading
Social trading allows traders to see what positions other traders are opening instantly and either manually follow these positions or follow all of the trades of this particular trader. The key idea behind social trading is very simple, it allows individuals to piggyback for the results of successful traders permitting them to make considerable amounts of profit. Subsequently the followed traders themselves make significant commissions for everybody who decides to check out their trades. Giving successful traders a reason to share their successful techniques and techniques with the wider Forex community.

This sort of trading takes a lots of the difficult decisions out of your trading process and that is partly why it is often pushed so heavily by brokerages. Since it attracts a whole new variety of traders who don't have an in-depth comprehension of the financial markets but do understand that there is much money to be made from day trading etc. But social trading isn't without its very own risks. A number of traders participate in high risk trading strategies in the hopes of making significant commissions from followers, often methods blow up leaving a great deal of their followers with huge losses. These trading sites have countered this challenge with a number of different methods, eToro by way of example allows some to assign at the most 20% of their total capital to following one person trader. Even these types of measures still leave traders facing significant risks.

This type of industry has flourished and will continue to flourish mainly because many people will be interested in the possibility of making significant returns on the capital from simply following trading actions of others. However the significant risks involved with such trading in many cases are vastly understated. Getting yourself into social trading can be done for very little with a few social trading brokerages requiring deposits of a maximum of $50. While I'm sure there have been a number of major accounts of success when it comes to social trading, We are willing to be there happen to be a similar number of substantial losses. Prior to involved individuals should take a long hard take into consideration whether this activity would work for them.