Thursday, June 29, 2017

Forex Social Trading

Social trading

Social trading allows you to use the know how and knowledge of other traders in order to help you profit from the Forex market!

Many brokers have started to implement aspects of social trading into their platforms. The first broker to do this and the broker with the most tested and reputable social trading platform is e-toro. Openbook is the name of the social trading area of the site and this is automatically accessible by anyone that opens up an account.

Openbook can be used in many different ways and has a wide array of information.

The most revolutionary feature of the system is the copytrader function. This effectively allows you to assign a certain percentage of your bankroll to copying the trades of your favourite traders. A search function allows you to examine the past performance of individual traders to find those that make the best profits. It can take a little time to find traders that have a trading style that you like, however once you get a few gun traders making trades for you, you can literally make money while you sleep. Every time one of these traders makes a trade, your account will take on the exact same trade (scaled to your bankroll allocation) and will carry the same stop losses and take profit levels. Of course if you don’t feel like copying all the trades of a user, but still like their style, you can ‘follow’ them and just take on the trades you really like, or even just use this in order to learn about their trading style.

Other traders are also contactable by a simple chat feature which you can use either to get a better idea of their trading system, find out their opinion on a certain trade, or even wish them luck for a trade which you will both be taking on. This feature can also be excellent to gain information about the market as traders regularly discuss the issues surrounding current prices. This can also be useful for getting information on news events, sometimes even faster than the time taken for an online news service to get an article together.

The other feature which can be interesting is using the market area to see what percentage of traders are long or short on a particular currency or index.

More and more users are taking advantage of social trading every day, it costs nothing to be a part of and you only have extra information to gain. If you’d like to examine social trading further, have a look at the short video below.