Benefits
If you are not an expert trader and you are looking into this market for the first time, you can find social trading very useful: comparing yourself with more experienced people, learning from them and even activating the copy trading function for a while, are elements in your favour. Copy trading is probably an advisable possibility to use especially at the beginning and for not high sums.
Another positive note is that it is not necessary to copy: you can participate in social trading and therefore know and compare yourself with other traders, but not for this activate the copy trading functions.
In fact, by participating in social trading, you are not obliged to activate copy trading. You can very well copy the others without having to activate them but you will have to be the one to perform the various emulation operations yourself because the automatic system is not active.
Disadvantages
While copy trading can help understand the mechanisms, especially for newbies, on the other hand, entrusting your money to others may not be the ideal choice.
In fact, by activating copy trading, you are putting the money invested completely in the hands of another person. Whatever choice it makes, any sale or purchase, you will do it too. If he gains, you gain too and he loses, you lose too.
Conclusions
A sensible choice, it seems to us to rely on social and copy trading especially at the beginning, to understand how the market works and to learn new strategies.
Especially for low sums, since with copy trading, practically, the choices on their money are entrusted to others. If you want to operate more importantly, then you should inform yourself, study and discover new strategies, completely yours.
Binary Options
Binary options are derivative financial products, the value of which derives from another product called the “underlying”. It is a bet, which you can make up or down, that's why they are called "binary": there are only two choices, nothing else.
Example
You are looking at the Facebook stock and you think, based on your predictions, that the value of the shares will increase by the end of the week (expiration of the trade). So you decide to bet on it: if what you thought happens, that is, the price of the shares goes up, then you gain, otherwise you lose.
These gains (or losses) can then be realized in a very short time because you can give the following deadlines to your operation:
► One-minute binary options.
► Five-minute binary options.
► Fifteen minute binary options.
► Half hour binary options.
► One hour binary options.
► One day binary options.
► One week binary options.
Investing in binary options is therefore quite simple; you just have to make a bet, up or down and wait for the expiry: if what you predicted happens, then you win, otherwise, you lose.
Being a fairly simple mechanism, copy trading is not widespread, but nothing prevents you from using it: if you find a trader who inspires you particular confidence in binary options, you can safely start following or copying his choices.
Attention
The fact that the action mechanism is quite simple (bet up or down) does not mean that you have a better chance of winning. The market always remains uncertain and the risks are never eliminated.
Forex
Forex is the market where currencies and coins are exchanged. Therefore, euros, dollars, yen, yuan, pounds and all other international currencies are exchanged. The copy trading function is also available for forex: you can decide that your account automatically follows the operations of a broker you trust.
So, even when you are not connected to your pc, if that person operates, you will do it too. This feature will not draw on your money infinitely: you can decide to entrust only part of your account to copy trading.
Example
You have 5,000 euros in your online trading account. I decide to keep 3,000 euros to manage as you prefer and according to your strategies and to allocate only 2,000 euros to copy-trading.
Attention
Always remember that to generate profits it is not enough to copy the best brokers. Over time, you must understand how the market works and formulate your own strategy. Be it stock market, forex or binary options.
