Today's world is witnessing a trading system that is primarily based on the internet. A more technical use would be of the word "social trading," which involves keeping tabs on the investments and habits of professional traders and peers alike.
The foreign exchange market, also known as Forex, is perhaps the most liquid financial market in the world. Liquidity refers to how much or how little activity a market witnesses; the higher the number of activities (trades in this case), the higher the liquidity. Forex is active and operates 24 hours a day, Monday to Friday, around the world. It is this activity that makes the FX market so liquid, with almost non-existent volatility. Yet still, Forex trading is a high-risk, high-turnover investment. The market itself is susceptible to unpredictable changes, all affected by either social, economic, or political factors.
Perhaps the most profound creation has been that of zulu trading platforms, all of which were created to efficiently manage Forex and other financial markets traded socially.
What does it do?
Copy trading, as the name suggests, is following in the footsteps of traders who are experts in their field. Simply put, it is copying.
Copying What?
Expert investment strategies. Also known as mirror trading, the procedure first entails choosing a trader. With individual assessments of different traders with regards to their profitability, risk level, or popularity, an individual decides on who to "copy." Next, an investment fund is put out. Experts suggest "not putting all eggs in one basket" and creating a balance between all strategic managers that are followed. The copy trading platform then automatically mirrors each record of the expert trader under the individual's account. Companies created and run exclusively for this purpose make mirror trading readily accessible, beginner-friendly, and simple.
Not only do they offer forex, but they also deliver support platforms for a diverse range of investing instruments. The list is not limited to:
• Cryptocurrencies
• Stocks
• Commodities
An absolute beginner can also make use of a risk-free demo account, which, as the name suggests, is a replication of actual real trading.
As with any venture, trading is risky. But what is life without a little risk, though? In the end, one either wins or learns. It's a win-win anyway.