Social Trading
What is Copy Trading?
Copy-trading works by relying on social networks and social trading systems. When one trader opens a position, they can broadcast this information to other traders on the network, who can then decide whether they want to open the same position, or alternatively, their automated trading systems can do it without additional input from the trader.
Usually, the primary trader who broadcasts their positions has experience in the underlying market and the copy traders might be entirely new to the financial markets. Forex copy trading is a popular strategy because price movements are often small but frequent, and constant monitoring is required.
You may ask what are the benefits and trade-offs.
Benefits
- Copy-trading enables you to diversify your portfolio into markets that you are unfamiliar with but want exposure to
- Through copy trading, you can access another trader’s expertise or make the most of seasonal trends that you wouldn’t usually consider as a potential opportunity
- With copy trading, you can make the most of your time by basing your decisions on those of traders with proven track records
Step 1 | Open An Account2
Pentagon Markets offer copy trading through the powerful MetaTrader 4 and MetaTrader 5 platforms. Open a trading account and deposit using one of our many funding options.
Step 2 | 'Choose' the best traders to follow
Find and follow the most successful traders. Our detailed Ratings Page ranks Providers based on their profitability over a given period of time. It includes their full trading history and past performance. To replicate their trading behaviour simply click ‘Follow’.
Step 3 | 'Copy' Trading options
One of the many benefits of our copy trading platform is functionality. We offer multiple copy trading modes and there is no limit on the amount of Providers you can copy. Try copying multiple Providers that use different trading systems and find out which best suits you.
Step 4 | 'Control' is still in your hands
Although you are replicating the trading behaviour of others, Pentagon Markets copy trading allows you to maintain control. You can activate and deactivate copy trading with the press of a single button. Login to the Social Trading portal using your MetaTrader 4 or MetaTrader 5 credentials and use risk management options including stop loss and take profit orders.
Trade-offs
- Copy-trading can provide little incentive for traders to do their own research and learn about the markets
- Copy-trading does not eliminate risk, which means sometimes the copy trading notice boards could be used by traders that are seeking to influence a market’s price for their own financial gain.
- While copy trading can help you when you first get started, it is not the only trading strategy available. Potential profits with little work might be enough for some people.
- Before you start copy trading, you should do your own market research. Speak with a Pentagon Market specialist who can advise you in getting started on the right foot.
Trade the markets with Pentagon Markets
- Metatrader 4 (MT4),Webtrader and Mobile Apps
- Real-Time Tracking with Advanced Client Portal
- Superior VPS Solutions for EAs, Scalpers & Auto Trading
- News & economic calendar
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