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Save time and effort with Copy Trading

Are you an investor without much in-depth experience? Do not have time? Also, do not know about Forex trading? Try the Copy Trading investment method once to invest for yourself. This is the “3 No” trading method used extremely commonly today. So what is trading with Copy Trade? The article below from Learn Forex Trading will help readers better understand this form of investment.

Explain what the term Copy Trading is in Forex.

First, we will start exploring the term Copy Trading in Forex. Like its name, Copy Trade is a form of copy trading. This means that investors can copy the trading positions of any professional investor in the market. Then proceed to set up an investment portfolio similar to theirs. If Pro Trader’s investment is successful, it means you have earned attractive profits without having to spend time and effort researching the market. On the contrary, if your investment fails, so will your order. At that time, you will have to lose an investment amount when performing Copy Trading.

See more: Trade smarter with Demo Trading

An illustrative example of Copy Trade

To help readers better understand this form of Copy Trade Forex, let’s look at the following example:

For example: You register to participate in the Copy Trading account of a certain professional investor A. At that time, the available capital in A’s account is $10,000 and you invest $1,000. If A makes a transaction with a total volume of $1,000 (1/10 of the available capital). The trade order will be immediately copied on your account with a capital of $100 (1/10 of $1,000). At the same time, orders such as Stop Loss or Stop Limit are maintained. If the investment is successful and A earns a profit of $500 (50% of capital), you will receive $50 (50% of initial capital).

What entities does Copy Trade Forex activity involve?

Copy Trading orders can only be executed when 3 entities are present. Including Follower (copier), Pro Trader/ Master (professional investor), and Broker (trading platform). In there:

Cross-transaction copying activity includes 3 main subjects

Follower: Investors will choose Pro Trader to copy and determine capital. If the transaction is profitable, they must pay a fee based on a percentage of the profit to the Master.
Pro Trader: Those who monitor, research, and analyze the market. If the transaction is successful, they will receive a percentage of profits from Followers. At the same time, receive additional commission fees from brokers if trading in large volumes.
Broker: The broker provides a trading copying platform for the other 2 entities. They will collect additional fees: account management, and transaction fees… depending on the policies offered.

Criteria to consider when choosing a Copy Trading account

To ensure effective Forex Trading transactions. Investors need to fix the criteria to help choose a reputable copy account such as:

The master must have a stable monthly profit income.
The copied account must have a high winning percentage.
Pro Trader accounts have a diversified portfolio to reduce risk.
You should choose a Master’s with practical trading experience of at least one year.
Master has a large number of Followers and good feedback.
The master account profile is complete and has a clear trading strategy.

Should you trade Forex using Copy Trading or not?

For traders new to this subject, Copy Trading is indeed an investment method that cannot be ignored. Let’s see below what benefits Copy Trade will bring to traders:

Investing using the Copy Trade method brings many attractive benefits

The process of setting up a Copy Trade Forex order is extremely simple and easy.
Using Copy Trade, Followers do not have to spend much time researching. All you have to do is choose a trustworthy Master to copy trades from them. Thanks to that, you can also save time for other investment activities.
Copy Trading investment form does not require financial investment experience. Because you can rely on the experience of the Masters to make profits for yourself.
Through copy trading, traders can also learn more experience when trading Forex.
For Masters, they can also receive commissions from Followers and exchanges.
Brokers even receive account management fees as well as transaction fees from Masters and Followers.

Some risks when using Copy Trading to trade

Besides the benefits, Copy Trading comes with certain risks. Most of these disadvantages affect Followers, for example:

When forex trading strategies with Copy Trade, the Follower will have to depend on the Master. If you choose an unreliable Master, the transaction will be at risk of failure.
Creates difficulties for copying investors in account management.
The impact of financial market fluctuations will make the Master difficult to grasp. Therefore, they may make inaccurate decisions, leading to losses.
Some risks come from choosing a less reputable broker. Providing false information causes Followers to make incorrect decisions.

See more: Registering Exness broker account on your phone

Pocket safe Copy Trade experiences for investors

If you want to conduct Copy Trading safely and effectively. Don’t ignore the following extremely important Copy Trade experiences:

Experience copying trades safely and effectively

Choose a reputable broker to avoid the risk of being scammed. You can choose based on criteria such as a long-standing broker, managed by a reputable agency, and many achievements…
Investing will be less risky if you choose a reputable and professional Master.
Masters do not always make the right decisions. Therefore, Follower needs to have an effective investment and capital management strategy. That will help you minimize the risk if the Master makes a mistake when entering an order.
You should not apply the automatic Copy Trading strategy because the risk is quite large. Therefore, you should Copy Trade manually or semi-manually. Analyze, evaluate, and change Masters continuously to have the highest chance of winning.

Summary:

In short, if you clearly understand how the form works copy trading. It will help you profit most effectively and safely. Hopefully, the information we have shared above is all the knowledge you need. Thank you readers for taking a little time to read the above article. Don’t forget to rate 5 stars and leave a comment right below the article to share with us Learn Forex Trading Please.

FAQs:

Is Copy Trading safe or not?

Copy Trade is an extremely safe and useful Forex trading method. With the “3 No’s” criteria, traders can earn large profits without spending too much time and effort.