What is copy trading?
Copy trading enables traders in the financial markets to automatically copy positions opened and managed by a selective investor, usually in the context of the social trading network.
Unlike mirror tranding, a method that allows traders to copy specific strategies, copy trading links a portion of the copy and traders funds to the account of the copied investor.
Any trading action made thenceforth by the copied investor such as opening a position, assigning stop loss and take profit orders or closing a position, are also executed in the copy and trader's account according to the proportion between the copy investor's account and the copying trader's allotted copy trading funds.
The copying trader usually retains the ability to disconnect copy trades and manage them themselves.
They can also close the copy relationship altogether.
Copy trading has led to the development of a new type of investment protfolio which some industry insiders call "people-based portfolios".
Find out more at cryptoversal.com.