A binary options social trading platform might seem like an odd thing, but more and more traders are making use of online communities to expand their market reach. While the term “social trading” might bring to mind Facebook and other social networks, social trading in the financial world encompasses a number of platforms – from forums to auto-bots to signal services.
What Exactly is Social Trading?
Just like the name suggests, social trading refers to the use of online communities to connect with other options traders. These communities provide an excellent source of information for beginner traders, but they also allow traders to discuss tactics and to learn about market changes and newcomers to the binary options market.
Binary options forums are communities dedicated exclusively to the social trading of binary options. They are often frequented by a mix of beginner and experienced traders who exchange tips and strategies, as well as share forecasts regarding promising options and how to grow your investment.
Beyond the Basic Strategies
Aside from the “social” side of social trading, this new trend also has additional benefits for investors. For example, a newcomer to the world of binary options investment are auto-bots. These are automated trading systems set over social platforms that allow you to keep track of certain changes in the market (or specific assets). They automatically monitor changes, then access your account and buy/sell based on preset records.
Another useful social trading tool is copy trading or mirror trading. This allows traders to copy or follow other traders to see how they’re building their portfolio and what transactions they’re pushing through. Copy trading is an excellent tool for beginner investors who want to learn from more experienced traders. Some trading accounts allow you to automate this process, so you are immediately notified when changes are made to the original portfolio you’re following. More advanced mirroring platforms might also allow you set things so your account automatically buys/sells assets if the person you’re following does the same.
Social trading is still in its infancy. If you’re interested and want to learn more about it, platforms like Communitraders are a good place to start – they offer a chance to connect with other traders in addition to a number of demo tools for those still learning their way around binary options.