Forex social trading or binary options is a practice of copying the trade of other traders that the user finds through the online social trading community.
Such a trading community can be used as its own personal support system and as a place where ideas and strategies can be discussed. Social Forex trading involves a huge number of different ways of communicating with other traders, including forums, profiles, blogs, trading signals, brokers and certain platforms that provide the opportunity to copy transactions. These forms of social communication help traders of all levels to interact with each other and improve their trading strategies.
Social Forex trading provides a unique advantage for beginners or overly nervous traders – it allows them to follow others and adhere to the strategy of more experienced traders during the trading process. Social trading also offers clear advantages to more experienced traders, as it allows them to become trading leaders and to generate additional profits, attracting more and more subscribers. Regardless of whether you are a beginner or an expert, the use of various social proposals is a great way to increase profitability and make trading more interesting.
Here are a few popular types of social trading platforms:
Signals or tips
If you are taking the first steps in social trading, pay attention to signals and tips that will help you make the right decisions. They can be represented by simple sources, such as the trader’s psychological indicator or the investor sentiment indicator on the broker’s website, or they can be generated by modern computer systems. When using this kind of social trading, you will not encounter any kind of interaction and you may even not fully understand the whole meaning of the signals, since you will not have the opportunity to ask the trade leader. Signals and advice will give you a clear position in the market, and you will decide whether to follow it or not.
The essence of copy-trading is to copy the trade of other traders. There are trading platforms that allow a trader to copy the transactions of another trader and repeat his success. To do this, the trader selects a trader from the leaderboard, after which each of his transactions will be copied to your terminal. Your account is strictly controlled, so you do not follow someone blindly, but overall responsibility still falls on your shoulders. Copying trading is an excellent way to trade without stress when making your own choice, because all you have to do is select the most impressing trader and copy his trades.
Forums and profiles
Forums and profiles are very important for every trader who plans to become a serious social trader, moreover they add an aspect of the entertainment of your trade. Forums allow you to communicate with other traders, while profiles help you to find out all their “inside”. The best platforms will provide in the profiles full biographical information, detailed data on the trading style, as well as open and closed transactions.
Most brokers offer forums for account holders and often, you can enter topics for discussion of more public forums. A good forum will have hundreds if not thousands of active users and you can join discussions on your choice, devoted to strategies, tools, tips and forecasts and much more.
From a technical point of view, automated trading is not 100% social trading, since this type of trade excludes the social aspect of trade. Autobots are robots that open a deal when you call a particular strategy or pattern. While social trade requires that real traders carry out trade, auto trade does not require human control at all. The system generates a signal and then automatically executes it on your account. There is a mass of classical automatic systems, but there are also new upgraded versions that can interact with your computer and the account constantly and without failures. The advantage of Autobots is that you do not have to worry about the so-called human factor. The disadvantage, of course,
When choosing a social trading platform, always choose a method that allows you to strictly manage your account. Set the amount of profit and loss. Managing your funds is perhaps the most important aspect of trading for both beginners and experienced traders.