SOCIAL TRADING IN POCKET OPTION AND HOW IT WORKS
Social trading is a relatively new trend in the binary options market. Having appeared initially on Forex, it has shown its effectiveness for any assets and sessions, offering an original way of working with the help of the professional community.
Unlike the usual social networks and forums, the broker’s internal platforms are used here, with the help of which the trader can use the signals of other players or completely copy their actions / transactions to his chart.
This way of working with assets has not received an unambiguously positive assessment, but it has been recognized as definitely useful in a variety of situations. I will immediately note that the disadvantage of such a service is that zero knowledge in trading will not be enough to choose the sources of copying transactions.
To understand the essence, we decided to take a closer look at the principles of social trading in Pocket Option, on the site where it is developing especially quickly.
WHAT IS SOCIAL TRADING?
The «social network» appeared first on Forex and quickly began to gain popularity, especially among beginners, who got the opportunity not only to follow the successes of more experienced traders, but also to enjoy the fruits of their intellectual labor.
This led to the fact that some inexperienced players began to blindly copy other people’s strategies, not even being able to evaluate and choose effective systems. Because of this, there is an ambiguous opinion about social trading on the market. However, the risks can be significantly reduced if you carefully choose strategies for copying transactions.
SOCIAL TRADING ON THE EXAMPLE OF POCKET OPTION
On binary options, the «social network» appeared during the second wave of popularity on Forex, but immediately in a finished form, without the disadvantages of the first Forex versions.
Despite the fact that most traders find its usefulness only in automatic copying of bets, the possibilities of this tool are much wider. For example, social trading in Pocket Option allows you to track:
– activity and number of successful transactions;
– trade turnover and profit;
– minimum and maximum bet amount;
– the number of the company’s clients following the trader.
In addition, by observing the transactions of a successful trader, you can learn from his experience and learn how to trade. This should be interesting for novice traders
All this allows the user to make a choice based on objective indicators of the skill and success of the player, and not to copy blindly the first available transactions.
Such social trading is useful for beginners who still poorly understand the connections and consequences of certain processes in the market, and can navigate trend changes thanks to the observations of experienced colleagues.
Players who have been working on the market for a relatively long time and do not need to copy other people’s deals can get a good profit from attracting an audience. Becoming a trading leader for beginners, you can earn additional profit, promote your own name in the world of option trading and make the work more interesting financially.
To activate the function, just click on the icon on the right side of the screen, after which the chart will begin to reflect the current rates of traders from the watch list.
If this way of working is not suitable, you can track the trade of other players through the panel on the right side of the screen. To copy another trader’s deal, just press one button, then the data will be instantly transferred to the open chart.
TYPES OF SOCIAL TRADING PLATFORMS
If we take not only social trading in the Pocket Option company, but consider this tool in the binary options market as a whole, then the following types of user interaction can be distinguished:
Chats and forums. Such a «social network» is not very common, but it is used on some platforms, allowing traders to communicate on professional topics online. In addition, participants have each other’s accounts open, which makes it possible to check the biography of the interlocutor, his experience in the market, the number of successful transactions, and more. This format of communication allows you to learn the «inside story» of working on different assets, the specifics of interaction with the broker, the nuances of working in the terminal and much more. A good forum should have several hundred thousand active users from all over the world, which will give excellent opportunities for positioning a trader in a professional environment;
Signals. The simplest «social network» of this type can be considered «majority opinion» – an indicator that is available on many platforms. As a rule, it is located near the «UP» and «DOWN» keys (more about the deals Above and Below). This indicator gives the trader some idea of what the percentage ratio of sellers and buyers is. Of course, this is the most simplified type of social signal that gives limited information, but there are also individual indicators. They are used on some platforms and each trader has them, which allows other players to follow his signals for a particular asset. Such a tool is more concrete than the abstract opinion of the majority and allows you to independently choose opinion leaders, focusing on their profitability;
Robots. Trading bots can be attributed with a stretch to social trading tools, but considering that they are created for specific conditions and assets, spreading exclusively in the trading environment, it is still worth mentioning them. The specified program of actions is triggered when the schedule changes in the right way and eliminates the need to track all the signals yourself. It is worth using this tool very carefully, because robots are “sharpened” for specific market conditions
Conclusion:
«Social Network» is still a fairly young tool on the market, requiring the user to evaluate other people’s strategies. Its capabilities are not limited to simple copying, but allow traders to communicate, grow in a professional environment and follow market leaders. Such services are still rare, but Pocket Option has already managed to implement it.
Social trading in Pocket Option is an example of a developing and popular tool that can be useful in binary options trading not only for beginners, but also for traders who already have certain knowledge and experience.