Social media has altered the ways we used to share with each other at a globe level. Interconnectivity of the world has grown more powerful now that a major share of the global population is interacting via some form of social media on a regular basis.
Social trading changes the old trading ways
Social media has been an online revolution that has grown into a huge industry all over the globe. It has even made its way through the world of forex trading. A major segment of the global population can now explore immense possibilities across the online trading platform.
Trading has gone a step further towards democratization with the help of Social Trading.
Social Trading is a good option that allows traders to connect with others directly so that they are able to imitate real trades, consider market analysis and updates and communicate ideas.
Traders are said to benefit much out of social trading once they consider it within their current trading strategies. It has become important for all traders to understand what social trading is and how they could utilize it for their benefit. They must discuss a few of the risks associated with social trading and how these risks could be avoided. Prior to using a social network for trading, relying on other traders and considering their skills and experiences, it is truly important for a trader to do a thorough research just in the way they will do for other forex strategies.
Social Trading isn’t going to leave the market so soon. The financial world has rarely seen a more disruptive technology than this one. On the contrary, much of the unresolved issues that the financial world has seen till date have been addressed by it quite comfortably. Without Social Trading, it wouldn’t have been possible for us to address a few trading needs so effectively.
A few of the needs that have been addressed by social trading are as follows:
1) Transparency – There has always been a need to make financial services more transparent till the time the new regulations showed an option to address this need for transparency. These days, social trading enables us to be more transparent by imposing certain regulation on trading means.
2) Risk Mitigation – The risk that traders are willing to take can be controlled by them once they take part in Social Trading. For those individuals that wish to take part in the market trades without posing as traders will also find this a safer option.
3) Market Access – Participants of institutional or retail trades aren’t able to access all financial markets. Forex is one such market that seems tough for them to trade in; they can only participate in it as a trader. Social Trading is one good option for them to gain access to the trading market before they actually become traders.
There are a number of things that need to be taken care of before Social Trading becomes an important segment of future trading ways. All the key regulatory bodies must accept social trading as a proper form of trading. All agencies that follow social trading find it to be a long educational process. A majority of traders have turned optimistic about it. The participation cost and extra transparency are two key factors that address various social trading issues, but that can be discussed in a separate article.Fisher Sr. VP Matthew Goldhaber