Ask About Copy Trading

@Rahadian: Previously, I wrote an article about social trading and copy trading here:

What exactly is copy trading?

Copy Trading is trading by imitating the trading positions of the trader being followed along with the money management used on a broker that provides copy trading. Forex brokers will display the performance of their traders so that it is clearly visible which traders can be followed, the amount of risk used and the results that can be obtained.

What's the difference with social trading?

Social Trading is a system where financial market investors rely on content aggregated by Web 2.0 applications as a source of information in their investment decision making. Social trading presents a new way of analyzing financial data by providing a basis for comparing and copying other people's trading techniques or strategies. Social trading is a type of online social network, it can be likened to Twitter or Facebook whose content is just trading ideas.

Based on this idea, then Social Trading resembles a large network containing successful/professional traders (signal providers) and their followers (trader followers). The form of the platform where Social Trading is located can vary, depending on the provider of facilities. Clearly, each functions as a place where traders can share thoughts about trading, follow those whose recommendations are considered reliable, and so on.

Simply put, the fundamental difference between social trading and copy trading is the mechanism of imitating traders.

• In copy trading, the follower (follower) automatically imitates the position/entry along with the money management used by the trader being followed. Profit in copy trading will reflect the profit earned by the trader being imitated, as well as if there is a loss.
• In social trading, the follower (follower) only sees ideas or ideas from the trader being followed. So social trading is not as strict as copy trading which really follows the position of the trader being followed.

Thank you

What about those who have an EXNESS broker? Is that social trading?

@Rahadian: Right, social trading. But it also appears to come with the ability to copy traders' positions as with Copy Trading. If you want to try this way of trading, it’s a good idea to ask broker Exness for a clearer explanation of the mechanics,

Thank you