What is Copy Trading in Forex?
If you just started trading Forex or thinking about giving it a go, you may be trying to get your head around how it all works.
Technical or fundamental analysis? Which pairs to trade? What’s the best position size for your account? When to enter and exit a trade?
These are questions that all new traders have, and if you are one of them, you may find it difficult to get the right answers.
But the answer isn’t always as hard as it seems. More and more traders simplify their decisions by choosing to copy trade.
Copy trading is the action of copying trades opened and managed by selected investors that belong to the same copy trading network.
Here is an example.
You’ve decided that you would like to trade Forex but don’t have the confidence or the time to analyse the markets.
Copy Trading allows you to pick a tested Forex strategy and copy it-that means that your trades will be opened and closed automatically, following the trades of the account that you choose to copy.
A point to remember: Your trading performance is tied to the performance of the account you are copying. For that reason, it is essential that you do not blindly select a strategy to copy, but that you assess all relevant performance data, such as the strategy’s profit percentage, maximum drawdown or profit and loss history.
It’s important to note that copy trading isn’t only for beginner traders but also for those who don’t have the time or the confidence to perform their own analysis. Even experienced traders may choose to copy tested strategies while they also trade manually.
Copy trading on Fondex cTrader
Copy trading on our trading platform, Fondex cTrader is easy and straightforward. To start copying top performing strategies, all you have to do is open an account and log in to the platform. As you may see, Fondex cTrader offers you the ability to “Trade”, “Copy”, “Automate” and “Analyse”. The “Trade” button corresponds to the manual trading screen and the “Copy” and “Automate” buttons to the copy and automated trading screens respectively. The “Analyse” function helps you gain an in-depth understanding of your past performance. Click the “Copy button” and you will display the main interface for copy trading, where you can view all available strategies.
Once you select your preferred strategy, you can start copy trading by clicking “Start Copying”.
If you’d like to have a look at the available strategies to copy, you can open a demo account to test and decide if this trading method is the right one for you.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.03% % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments.
