Have you decided to invest online but have little experience and are afraid of making the wrong choice? When you don't know what to do, the simplest thing is to copy those who have been investing for years and have already achieved excellent results. On online investment platforms, this replication mechanism is called copy trading.

In this complete guide on copy trading, I will explain what it is and how it works, how much you can earn by copying the best traders, what are the advantages and disadvantages of this technique, therefore how to apply it to binary options and how to apply it for the forex market. Here's what you need to know.

What it is and how it works

The meaning of copy trading is quite simple: "copy" stands for copy and literally means "copy someone else's trading". In practice, if you are an inexperienced investor and do not know where to start, you can use the "copy trading" feature and have your platform automatically copy all the operations of another trader/broker, chosen by you.

Copy trading is also called "mirror trading", where "mirror" stands for mirror and the meaning is easy to imagine.

There are not yet many online trading platforms that offer this function, but many will likely follow this new business model.

Also because for the user, the operation is very simple and intuitive: the trading platform offers a sort of social network; here you can start getting to know the various traders and, after discussing and also talking to that trader, you can choose to activate the copy trading function on him.

At this point you do not have to do anything: the system, in a completely automatic way, will follow all the moves of that trading, it will copy them perfectly. Everything that that trader will do too: purchases, sales, will all be entrusted to the experience of the trader that you have chosen and that you consider most reliable.

In theory, you can start trading even without understanding anything, ignoring even the most fundamental rules, simply by activating the copy trading function, the site will automatically do the same things that that specific person does. Of course, at any time you can deactivate the copy trading function and therefore stop emulating. More here acorn2oak-fx.com/forex-copy-trading.html

The best traders

Once you decide to delve into the world of social trading, you will not suddenly find yourself in a social network completely without rules and help. To find and choose the best traders to emulate, you have several elements at your disposal:

► Feedback. Just as it happens in e-commerce sites, even in copy trading you can insert reviews in a special section.
► The earnings obtained up to that moment.
► Which markets they trade on (whether in stocks, bonds, forex or binary options, or in multiple markets).
► How much they invest on average.
► The number of followers, i.e. how many people follow him.

Continued