What is Social Trading at Profitto
Social Trading can be known as copy trading a product of the social trading movement which in its broadest sense is defined by investors’ willingness to share intelligence, expertise as well as actual trading decisions and reasoning and allows an investor to directly copy the trading activity of another trader. These copying trades technology is frequently used by less experienced traders who wish to copy experienced traders in their day-to-day trading cycle.
This means that beginner traders (copy traders) will rely on more professional traders (strategy providers) to manage for them the opening and closing of trades of various financial instruments across different financial markets. Given sharing of trading information, Social Trading emerged as the logical next step and refers to the practice which allows one trader to replicate the transactions carried out by another.
It may be done manually whereby traders actively select the individual trades they wish to copy; however, the term has habitually come to refer to the automated service offered by some social trading managers and which allows every position taken by a selected trader to be copied into the trading account of another.
This of course works in the opposite way as well, whereby expert traders, who are often referred to as Strategy Providers, can share their experience with other investors who benefit from it by copying their trading activity.