The so-called copy transaction means that investors can make copy transactions according to the real rate of return of other investors in the community in the process of foreign exchange trading. After the copy, the real capital account of the copy object can be bought and sold while the own capital account can carry out the documentary operation without delay.
Today I will talk about the future development of foreign exchange trading new direction!
Online trading has been popular among individual investors since the 1990s and has been evolving for decades. With the development of technology, this type of trading is constantly evolving, but the biggest change is the way investors interact with the market.
Studies have shown that forex trades take about 0.1 seconds from execution to termination, and that human nature and emotions, combined with a lack of expertise, can lead traders to make mistakes.
For this reason, more and more financial institutions are using automated trading to replace human involvement.
Artificial intelligence (AI) is a science that is becoming increasingly important in finance.
In theory, AI could eliminate bad human decisions.
At present, AI cannot be fully used in FX trading, because AI is unable to judge some factors that affect market movements, such as earthquakes, droughts, wars, political instability and state coups.
So until AI gets better, humans will mostly rely on their analytical skills to market — at least for a while.
The market has recognized that potential traders have the desire to trade, but they often lack the experience and confidence to trade. It is for this reason that they have developed Intelligent Trading (Expert Advisors), or EA, which is essentially based on automated trading algorithms that allow traders to code the parameters of their trading strategies.
These very complex but easy to use tools can help traders improve their trading strategies and gain a potential advantage over the market.
It can be difficult for investors who are just beginning to understand coding parameters, positions, closing strategies, and various other technical terms.
This is why Copy Trading programs have become very popular, because copy trading offers inexperienced traders the opportunity to follow the right traders.
Another reason for the popularity of replica trading platforms is that they benefit both parties.
The strategy manager (the master trader) makes his trading strategies public, the merchandiser copies them (earning a successful trade), and the strategy manager gets a commission from the merchandiser.
From an investor’s point of view, there are many advantages to copying.
The most obvious benefit is expected to be the lower barriers to entry for replication trading, which requires only following successful traders in the community.
This is part of the appeal of the copy trade, which is easy to understand and attracts many investors.
Copycat trading is like the traditional fund investment model, in which investors hand over money to skilled traders and expect them to make big profits by trading.
Unlike funds, investors can monitor their own capital movements in the process of copying trades. If investors are not satisfied with the trading strategy of a skilled trader or doubt their ability to take risks, they can terminate the copying trades at any time.
As a result, there is a high degree of transparency in replica trading. Investors can learn trading techniques from successful trading masters and apply them to their own trading.
In the process of replication trading, it is particularly important for investors to choose a suitable replication object or a trading expert. If they choose the wrong one, they may lose funds. Therefore, investors actually accelerate the learning of trading technology in the process of replication trading.
Who should be copied?
Choosing a suitable copy object can be difficult, but social networking sites that offer copies for sale make it easy.
For example, through social trading sites, investors can rank the most popular or successful traders.
Each platform provides different criteria for ranking, with some looking at recent returns and others looking at factors such as risk control.
Investors can make a choice based on their actual situation.
The foreign exchange market is such a market that you never want to leave once you get to know it. In the era of rapid development that China is about to usher in, it is a good news for investors and financial practitioners!
