Mirror trading

Mirror trading is a trading selection methodology that can be carried out in both the foreign exchange and the stock markets; however, this is much more common in trading in the foreign exchange market.[1]

The mirror trading method allows traders in financial markets (and, to a lesser degree, stock markets) to select a trading strategy and to automatically "mirror" the trades executed by the selected strategies in the trader's brokerage account.[2]

There are two specifics of mirror trading. The first is connected with fundamentals of trading: to execute trades, investors copy signal services and auto-trading services. The second factor relates to the investment amounts, as mirror trading is linked to large investments.[3]

Traders can select strategies that match their personal trading preferences, such as risk tolerance and past profits. Once a strategy has been selected, all the signals sent by the strategy will be automatically applied to the client's brokerage account. The trades are delivered and executed automatically with entry and exit points on multiple currency pairs. No intervention is required by the client as all the account activity is controlled by the platform.[1]

Clients may trade one or more strategies concurrently. This enables the trader to diversify their risk while maintaining trading control of their account.

  1. ^ a b "Copy Trading Revolutionises the Concept of Mirror Trading".
  2. ^ Surminski, Alexander; Bernegger, Marc P. (2013). "Mirror trading automates investments, reduces effort without eliminating responsibility". Archived from the original on 2013-07-07.
  3. ^ Fischer, Matthias (2021). Fintech business models : applied canvas method and analysis of venture capital rounds. Berlin. ISBN 978-3-11-070490-7. OCLC 1280542735.{{cite book}}: CS1 maint: location missing publisher (link)