Is the term social trading the same as social media? To answer this question, it is better if you listen to the following brief explanation.
Social Media and Its Relation To Social Trading
Talking about social media, of course, cannot be separated from the various activities of the Indonesian people or even the world today. Because there are so many users who provide information or even their daily moments in the media.
Social media itself comes with several forms of platforms that differ from one another. With the platform, of course, each user's interaction can be done easily.
With a variety of developments that it presents. Now social media is even integrated with various types of platforms for forex trading. This is what came to be known as social trading.
Get to Know Social Trading and How It Works
When viewed from the form it has, this activity is included in modern investment. In addition, its use also provides good benefits to traders. Because they can monitor what other traders are doing in the same network.
This is done so that he as a trader can follow the same steps. This action is known as copy trading, mirror trading or even various other trading replication systems.
To do this, of course, you as a trader must join or register on one of the trading platforms. After that, then you can follow other traders. Also make sure to follow profitable traders.
By taking these actions, of course you as a young trader can get a higher profit opportunity.
Characteristics of Social Trading
When viewed from the way it works and its existence is starting to attract the attention of novice traders. Indonesian social trading comes with several basic characteristics it has. Want to know anything? Here's the explanation:
Free exchange of information
By interacting in one or even more social trading platforms. Of course, making the process of exchanging information easier and free. You can do this through the homepage in general, the comments column to the chat feature or private message.
Another basic character that is also shown by this form of trading is the wide open opportunity for cooperation. In this case, some investors can combine their funds to be traded by professionals.
The last part of the characteristics of this one trading is the form of high transparency. That's why you as a novice trader can see the history of other traders. Not only that, you can also see several things related to:
- Winning percentage
- Percentage of loss
- Profit generated on average
- Best trading results
- Worst trading results
- Number of followers
- Trader rating
The Current Social Trading System
For social developments in today's trading world. There are several main systems that are commonly used by it. The system consists of:
In this one system, you can see how transactions made by other participants. But if you want to emulate it, you also have to place orders and carry out transactions independently.
To imitate transactions made by other traders. You have to follow the trader first. Meanwhile, you can choose the imitated transaction according to what you want
Apart from following the selected traders, this system also requires you to follow all the actions taken by other traders.
That's presumably a brief explanation of social trading that the author can explain this time.