Key advantages of copy trading on Nigerian Forex

Posted by News Express | 21 January 2020 | 1,990 times

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Successful trading of foreign currencies does not always require expert knowledge. Copy-trading allows you to gain profit with little time or effort needed.

Copy Trading Strategy in Nigeria

Today, the digital economy offers an abundance of ways to boost personal income. Trading of foreign currencies, an activity that swept numerous countries on all continents a while ago, has now gained traction in South Africa. Thanks to the services of Alpari Copy trading Nigeria, it is even accessible to beginners with little experience of playing on finance markets.

This strategy is implemented by rookies and veterans alike, as it saves time and effort. Basically, all you need to do is choose a successful expert (strategy manager), whose trades will be replicated in your account. This way, you are essentially delegating the job to a pro, while profits keep growing without your active participation.

It is natural to be afraid of making mistakes. In the world of stocks and currencies, mistakes could cost a lot. To safeguard yourself against critical losses, you can trust an Alpari expert with handling a portion of your funds and investing it for a profit. However, there are a few important caveats, which are covered below.

The Concept Made Simple

This model has revolutionized the world of trading. The core of the arrangement is replication, as the name suggests. All the exchange trades executed by the chosen expert are copied into your account, so you can often reap profits without lifting a finger. Similar strategies are also present in the realm of stocks.

This explains the convenience which is recognized by inexperienced and experienced traders alike. On the one hand, the approach is preferred by beginners lacking relevant knowledge.  On the other hand, even weathered traders in Nigeria and elsewhere may employ it to save time.

The Mechanics In Action

So, what happens if you agree to use the service through your broker? A certain portion of funds in your portfolio (determined by you) is connected to the account of the strategy manager, thereby constituting a percentage of their funds. You will now see all actions they subsequently take on the market, replicated or copied, in your account.

This essentially looks as if you were completing the same orders. Whenever they open or close the positions, execute Stop Loss or Take Profit orders, you will see the same things happening with your portfolio automatically, based on a predetermined proportion. Naturally, this convenience entails a certain fee, which may take the form of a fixed monthly subscription.

An Example Transaction

For example, you may choose to invest $1,000 through a Strategy manager, who then makes a $500 profit on a trade. In this arrangement, you stand to gain $450, while $50 goes to the expert as a reward. Different brokers may offer different terms. Here are the benefits provided by most of them:

  1. Simple to understand

The approach requires no complex knowledge, as all the trades are initiated and handled by the chosen expert.

  1. Control

You may pick the trader you like based on their history. Choosing how much to invest is also up to you.

  1. Security

The company guarantees the protection of your funds and data.

  1. Updates

Via the provider’s software, you may easily track your strategy manager’s action at any given moment to check that their performance is up to scratch.

  1. Accessibility

Since the platform is digital and optimized for portable devices, you may stay connected while on the go.

  1. Management

Your chosen expert will only receive their fee if the trade has brought profit. As a client, you are free to invest and withdraw funds as you see fit.

Finally, a Word of Caution

Despite the relative simplicity of the scheme, and its wild popularity in Forex trading, remember to stay in control. The virtual tools allow you to monitor your expert’s performance and terminate the connection if they make losses. Some platforms also allow you to cancel the replication of separate trades that you dislike. Finally, it is crucial to remember that the more you invest, the more you could not only gain but lose as well

Source: News Express

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