Hana Fidelity has been sharing financial freedom with traders since 2014. In a continuous effort to give traders a more comfortable and safe experience, its experts have been improving the platform ensuring traders can enjoy and make use of that freedom to trade whenever and wherever they like.
Option Copy Trading
Copy trading is replicating another trader's positions using social platforms, automated tools and signals. Copy trading is a type of trading where you copy the trades performed by another, more experienced trader. It can be manual, semi-automatic or fully automatic.
Copy trading allows individuals to automatically copy another trader's positions when they are opened or closed. Traders can copy positions in many markets, including forex, stocks and CFDs, including Bitcoin (BTC) or major precious metals such as Gold or Platinum.
Pros and Cons
- Authorised practice — copy trading is recognised by key regulatory frameworks when using a licensed broker.
- Portfolio diversification — gain exposure to opportunities you wouldn't usually consider alone.
- Risk — strategies can fail; losses can translate to follower accounts.
- Control — copying means entrusting part of your portfolio to another trader's decisions.
Risk
All types of trading are associated with risk. Never invest money you cannot afford to lose. Copying high-risk assets such as forex, crypto, or binary options carries higher risk; blue-chip strategies tend to be lower risk.
A common beginner mistake is only copying one trader. Diversify by following more than one strategy to reduce concentration risk.
