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COPY TRADING GUIDE

What is Copy Trading?

Copying from someone else is not always a bad thing. In fact, it can be beneficial for both parties in the right context, such as Copy Trading. In a nutshell, Copy Trading is the system that allows an inexperienced trader to securely copy an experienced trader’s strategy or positions. 

In essence, one side invests in the other side’s trading strategy. The investor cannot access the trader’s strategy. Likewise, the trader cannot access the funds of the investor. In case of a successful trade, both parties win. Otherwise, both sides lose.
 

How Does Copy Trading Work? 

There are several ways to copy trade. The process may vary depending on the platform, but the basic principle is the same: you either copy the position of another trader or attract investment for your successful strategy. 

GKFX Prime offers PAMM (Percent Allocation Money Management) service which lets you pick a “Master” and invest in Master trader’s offer. Alternatively, you can put out an offer as an investor (follower) and let a trader (Master) accept you as a follower.
 

A trader can benefit from PAMM as a follower or as a master. If you are an experienced trader with a proven strategy, you can attract followers and earn commissions from their winning trades. PAMM securely applies your strategy to your followers’ trades and doesn’t let anyone access your strategy.

If you are new to trading or simply looking for an experienced trader to invest, PAMM Follower account is perfect for you. Because, you can pick a master offer based on your taste for the risk, fees and expected profit. In other words, you get to choose your conditions. 
 

Please note that by copying another trader you don’t lose control over your trades in your retail account. This means that you can still open and close positions on your own, you are not limited to your PAMM account. 

Either way, PAMM is a highly efficient system that brings the new and the experienced traders together. 

How to Become a Master

1) Open a GKFX Prime account
2) Go to MyGKFX Prime and select PAMM
3) Click and open a PAMM account
4) Create a Master offer

How to Become a Follower

1) Open a GKFX Prime account
2) Go to MyGKFX Prime and select PAMM
3) Click and open a PAMM account
4) Select an offer to invest
 

The Benefits of Copy Trading

Copy Trading is a good way to diversify your portfolio. By copying an experienced trader, you can invest in markets that you don’t know a lot about.

Copy Trading can save you a lot of time. Because CFD trading often requires constant monitoring of the markets. With Copy Trading, you can minimize the time you need to spend analyzing the markets. 
 

It’s a great starting point for new traders. Because inexperienced traders can get familiar with different markets fast. Moreover, all levels of traders can use copy trading as an alternative investment.
 

The Risks of Copy Trading 


Copy trading doesn’t eliminate the risk. Market volatility can still affect you. You may lose your investment. 

Another critical issue is that the past performance of a Master trader in PAMM doesn’t necessarily mean anything for the future. Someone who has successfully traded in the past may fail in their next trade. Don’t forget that even the most accomplished traders are human after all.

Thus, self-education is important. You should always do your own research and analysis. Supported with education, Copy Trading can be a good stepping-stone towards Forex trading mastery. But don’t forget that you are never alone. GKFX Prime offers high quality educational material for you, such as market news, webinars and articles for free. 
 

What else is there?


There are also other options such as ZuluTrade and AutoTrade that allow you to automate your trades and mirror proven strategies respectively. This system is better known as ‘social trading’.

While technically it is not copy trading, you may also want to work with a Money Manager – someone who trades with your funds on your behalf. GKFX Prime offers MAM (Multi Account Manager) technology for this purpose.
 

Summary


Copy Trading is an efficient trading solution for traders who has little to no experience. It allows new traders to invest in proven strategies made by expert traders. With minimal effort, anyone can take part in the online trading world, thanks to Copy Trading. Experienced users will receive more investment for their trading strategy, potentially increasing their winnings. 


 

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