Social Networks of Binary Options Traders

Contents

  • Introduction to trading social networks
  • Salient features of social trading networks
    • Customizable contour
    • Platform language
    • Trade history
    • Mirror and copy trading
    • Provision to copy followers
    • Copying with a demo account
    • Rating and interaction
    • Mobile application
    • Social media integration
    • Forums
  • Things to consider
  • Advantages
  • Disadvantages

The binary options trading manufacture continues to see exponential growth with most of the participants beingness newcomers to online financial trading. Naturally, the beginners run from pillar to mail in search of tools that give them an edge in analysis and execution. Fortunately, the inflow of social trading networks has opened a new gateway for amateur traders to benefit from the ideas and skills of professionals. Regardless of whether a person is an exceptional trader or a beginner, social trading networks lead to mutual success as discussed below.

The traders’ social networks can be defined as the facility which allows traders to make investment decisions solely based on social (information received from other traders) indicators. The concept is quite similar to that of pop social networks such as Facebook and Myspace. First, a trader should create a profile, which should include the details about the market in which he is active and the strategy employed to benefit from the price movements. The trader should and then propagate his profile link to get
like-minded
traders to follow. Once this is washed, traders within a network tin can share their ideas among others in a manner similar to updating the Facebook status. The notable feature about these traders’ social networks is the integration of theexistent-time
trading feeds of the traders belonging to a network. Thus, any trades executed past a trader are concurrently shared with others in the network in an automated manner. A beginner who is a part of the network can therefore see the overall buy or sell trend. Additionally, technological advancements and transparency allows quick sorting of best and worse performers. This process profoundly assists a newcomer to brand better trading/investment decisions.

It is not a surprise to know that the social networks were initially introduced by brokers. The procedure was easier because of the fact that a broker had access toexistent-fourth dimension
data feed and data regarding a customer’s trading activity. Initially, the traders’ social network was created by Forex brokers. Considering the catalytic effect of such social networks in the growth of Forex industry, binary brokers (such equally EmpireOption) quickly responded with similar traders’ social networking platforms.

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Salient Features of Traders' Social Networks

Customizable contour

The binary options social trading networks let a trader to customize the contour. A trader can select his nickname, load profile photo and introduce himself in a way in which he would similar the earth to see him. The profile will also reflect his option of marketplace and trading style.

Platform language

Autonomously from English being the chief medium of communication, social trading networks allow exchange of ideas in most of the widely used languages around the globe. This is quite of import because the fact that trading skill is no mode related to communicating in English or any other language.

Trade history

Virtually all necessary details to scrutinize a binary options trader are provided in a social trading platform. This includes success percentage, almost profitable nugget, best successful streaks, trading frequency, maximum drawdown and details of final 3 trades. Even the followers and copiers of a trader are shown. Furthermore, those followed or copied by the signal provider himself can be seen as well.

The trade history provided in a social trading network platform will also bear witness the existent balance of a profiled trader. Additionally, the trades which are currently open up can also be seen. Some platforms, even allow the merchandise history to be downloaded for further assay.

Mirror and re-create trading

Since early 2000, mirror trading facility has been available in the Forex market. Equally the binary options industry started registering impressive growth, the brokers (such every bit IQ Option or RBOptions) began offering the mirror trading facility through the social trading network platform. A mirror trading facility enables a trader to automatically reflect the trades executed by the selected strategy in the business relationship held with a binary options broker. More than a unmarried strategy can be traded meantime. Such a process allows balancing of risk. One time a trader links his account with a particular strategy, the social trading network platform takes intendance of the remainder by automatically applying the strategy in the client’s trading business relationship.

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The binary pick brokers also offer copy trading facility to a trader. It is much similar to the mirror trading facility except for the fact that instead of specific strategies, a portion of the copy trader’s majuscule is linked to the account of the copied investor. Thus, in accordance to the proportion of funds allocated, all actions (opening, stop loss, take profit) of copied investor are carried out on copy trader’due south business relationship. One of import thing to remember is that a re-create trader, at his behest, on asuo motu
basis, can disconnect the link with a signal (copied investor) provider. This is applicable even when there are copied trades pending auto close. All actions pertaining to re-create trading are automatically managed by the social trading network platform.

Provision to re-create followers

The social trading networks, fifty-fifty allow a follower to exist copied. A trader would be smart plenty to brand an impressive pick of traders to copy, but may not take even a single trading determination on his ain. All the same, such a copier or follower can exist copied by another trader. It is a feature that reflects the technical advocacy in social trading platforms.

Copying with a demo account

To evaluate a binary options bespeak provider, some social trading networks allow the signals to exist replicated in a demo account. This allows applied scrutiny of the signal provider’due south account.

Rating and interaction

The binary selection traders, based on their copying experience, can rate signal providers in social trading networks. This facility allows newcomers to speedily validate a point provider. Additionally, the platforms also allow binary option traders to interact with fellow traders within the customs. Thus, ideas tin exist exchanged quickly and effectively.

Mobile application

This feature enables a trader to access a social trading network through his mobile. For instance, ZuluTrade and Copyop social trading networks offer fully functional mobile awarding (Android & iOS) to their clients.

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Invariably, all social trading platforms allow a trader to integrate his business relationship with
well-known
social networks such as Facebook, Twitter and Google+. The facility allows a trader to postal service his trading functioning and attract followers with relative ease.

Forums

The social trading networks include forums which allow binary option traders to exchange trading strategies and offering suggestions to trading related doubts. Additionally, near forums offering a library of articles from seasoned market experts.

Things to consider

Before selecting a social trading network, a binary options trader should consider the following details:

  • Headquarters (location) of the broker and the provider of social trading platform (if both are dissimilar).
  • Brokers with whom the social trading network provider has partnered.
  • The minimum investment required to open an account and apply the social trading network.
  • Currency in which the account is maintained.
  • Social network management fees, if any.
  • Price per copy trade.
  • Rules governing a network trader.
  • Account protection for copiers.
  • Compensation offered to traders.

Advantages

  • Empowers traders with much needed knowledge.
  • Facilitates meliorate trading decisions.
  • Creates transparency past assuasive gratuitous flow of information.
  • Enables risk mitigation.

Disadvantages

  • Discourages learning the art of technical and cardinal analysis. A beginner will put little effort to learn and create a trading strategy of his own.
  • Too much dependency on other traders for making trading decisions.

Information technology should be remembered that, as no ii binary brokers are the same, no two trading social networks are similar. A binary option trader should have a articulate agreement of the facilities (discussed above) offered past various social trading networks and carefully choose the one that suits his or her needs.

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