Binary trading is constantly rising in popularity, and the number of traders keeps getting larger. At the same time, social networks are also becoming an important part of the Internet, but also of our society and culture. Therefore, it is no wonder that binary trading and online socializing merged – and this is how social trading was formed. In this article, we will tell you more about this phenomenon and its advantages.
What is social trading?
Social trading (also called copy trading) is an innovative concept of binary trading. It is incorporated in a social trading platform, where the users have their accounts and perform trades. Social trading is transparent and open. Everyone can see the trades of others and the amount of money they invest, win and lose. New and inexperienced traders follow the more successful ones. They can decide to copy them and make the same trading decisions as they do, in order to achieve the same success in trading and gain higher earnings.
In addition to copying the moves of experienced traders, social trading platform offers other opportunities as well. The traders can interact, exchange advice, views, experience and ideas. This way a sort of a binary trading community is formed.
You can find opportunities for social trading on specialized platforms created for this trading type. However, some binary brokers offer it as well, in addition to their regular platform. Even some automated systems, Top 10 Binary Apps, offer variety of trading option for users.
When you start social trading and decide to only copy others, you can set up the control of loss, which further decreases the risk. This way, if the trader you copy loses more than you are allowed to afford, the trades will automatically stop.
Advantages of social trading
Even though social trading is a new concept, it is already popular and favorite among many traders. It undoubtedly has plenty of benefits, which is what makes it increasingly popular.
First, it helps new traders make trading decisions without a great risk. Before you start binary trading, the concept seems fairly simple and easy. But when you start it, everything may seem difficult and you may get overwhelmed with information. Social trading allows you to copy those traders who are more successful than you and rely on their skill and knowledge before you gain your own.
Then, social binary trading platforms allow interaction with other traders. This means that you can exchange ideas, opinions and resources about market analysis, trading strategies and everything related to trading. Because of this, you will be able to learn a lot, get new ideas and gain experience more quickly. Interaction and exchange of information with other people is not only useful, but it also makes learning faster and more enjoyable.
As your knowledge, skills and experience grows, you can become the successful trader other people will follow. When you gain such status, it can increase the income you gain on social trading platform. But more importantly, it boosts your self-esteem and gives you a peace of mind and serenity, and you can enjoy the trading as well as the reputation you have.