Foreign exchange trading, also known as forex trading, is the trade of foreign currencies. It involves buying and selling currency pairs. Forex trading is possible for anyone by opening a trading account with a forex broker. It does not matter if you’re interested in forex trading but don’t have the necessary knowledge or time. Many trading platforms offer copy trading. As the name suggests, copy trading is copying or replicating strategies/positions of a professional trader, also known as master trader. Forex copy trading is legal and you can use any trader to copy it.
There are two types of copy trading: automated copy trading or manual copy trading. Manual copy trading gives you more control over your trading decisions. Automatic copy trading automates your trading. Your account is directly linked to the master trader’s account, so any trades they make will be copied directly into your account.
Let’s suppose you are a novice trader who has opened a small trading account. Although you have some market knowledge, it is not sufficient to consistently make profits. You come across a trader who has a track record of making profitable trades. You can follow the trader’s signal and automatically copy their trades in your account. Connect your account with the signal of a professional trader and your account will automatically copy their trades. You will see the trade executed in your account every time a professional trader executes a trade. You can not only make profits but also learn from pro traders and, with time, can optimise your own strategy.
This concept is becoming increasingly popular. Copy trading is a way for traders to make money without having to trade. Trades can be copied by both novice and experienced traders. Copy trading is a great way to make money from well-respected traders who have a track record of making a profit. Copy trading has another advantage: you don’t have to invest time learning trading skills.
It is easy to get into the market by copy trading and social trading platforms. It isn’t perfect, and everyone knows that trading comes with capital loss. If a professional trader loses a trade, you will also be affected. Thus, it is important to choose a professional trader who has experience. An experienced trader is more likely to keep generating profits for many months or years than someone who just started trading or who has had some luck. You should only choose traders with a high win ratio and good risk management.