The use of copy trading has been used in Forex trading for several years, in the binary options market it has been gaining in popularity the last five years or so for the inexperienced binary options trader.
To put it simply, copy trading involves the use of special software that helps the novice trader who is without adequate experience to enter the world of market trading with more ease and confidence.
One can think of copy trading as the “social media” trading of the financial world. The concept is based on giving novice traders the benefit of learning tricks of the trade from the more experienced traders. If you remember when your schoolteachers used the learning curve, you remember that your poor grade benefited from the higher grades of your classmates.
Another term that is coined for copy trading is auto trading and in order to use it, you have to get the Google Chrome browser extension, with the cheapest, or bronze version, costing around 200 dollars for a subscription.
The whole thing runs very similar to Facebook, or other social media outlets. The novice traders on the site are able to follow more experienced traders, learning from their experiences. Of course, as you grow in your experience and capabilities, others will begin to follow you.
Once you have the software set up, the auto trader will choose the underlying asset and will set the time of expiration. It will also set the trading amount that you have already preset one time. The software will then set a put or call automatically. Behind all of this is a live trader, who sets it all in motion. This live trader implements the trade and the system and gets the whole thing going for that trader and all of those using his system.
A signal will indicate to the traders when it is time to act, but you must be sure to act quickly, remembering that, as the signal comes by text or email, there will be a lag in reaction time. This is very time sensitive, so you must act quickly if you are to avoid significant losses.