What is Binary Options Copy Trading?
As hinted above, binary options signal trading is a form of investing that allows normal traders to use software to automatically copy and execute the trades performed by other professionals in real time.
By this, traders will be able to make steady money in financial investing without actually having to spend a very large amount of time doing research and following the latest developments in the business and financial world.
Other professional traders will do all this work. Normal traders will only have to adjust their signal inesting software to track the actions performed by professionals. After this, the software will automatically execute the actions performed by professionals in real time.
How does it work?
First a trader will have to sign up at a binary options mirror trading provider and a broker. On the signal trading platform, the trader will have to choose a professional that has a proven track record of successful trades.
Finally, the copy trading software will automatically execute the actions performed by that professional trader.
Who are the signal providers?
There are two entities that are called binary options signal providers. First, there is the company that provides the technology and platform that allows people to copy the actions performed by others in financial investing. Some of these companies are even brokers themselves.
The second category is those of professional and highly trained traders who have decided to become signal providers themselves. These are the people that normal traders will be able to track and follow with the goal of copying their actions.
How do signal providers make money?
So, now you may ask why financial mirror betting even exists and why signal providers (those in the second category) even decide to make it possible for others to follow their actions. It’s because using mirror trading in financial betting all three parties involved in this process will gain profits.
First, the signal trading company that provides the software and technology will earn money on the sale of its software platform and/or charging a monthly subscription from traders who are using the signal trading services provided.
The professional traders who have become signal providers will make money on the successful trades executed by the people who are following them. These professionals will receive a small commission from the profits made by the people who copy their actions.
It’s extremely important to remember that professional traders who provide signals exclusively make money on successful trades made by others. Traders who use the signals provided by these professionals WILL NOT have to pay anything at all on losing trades.
And in the end, the regular trader will generate money without actually having to do anything and at the same time profiting from the expertise of a high-end professional. – Since the trader will only have to pay a very small commission on successful trades only, everyone involved in this process will win; nothing happens to the expense of the other.
Is it Safe to Use Copy trading in Binary Options?
As explained above, binary options mirror betting only works if all three parties involved in the process win. If one party is unsatisfied and quits, then the remaining two will not be able to continue to make money.
If traders notice that they are being provided bad signals, then they will obviously stop using the service. As such, both the professional traders and the company that provides the signals will not make any money at all. It’s all about satisfying the trader really.
Naturally, traders should also make sure to only use the services that are provided by well-known and well-respected binary options copy trading service providers. There are literally hundreds of providers of this kind out there.
We tried to make a list of such providers in order to recommend our traders the ones that we know for a fact that are only offering reliable and legitimate services. You can find them on the top left menu of this page. Check them out.
Can signal trading guarantee winnings?
Mirror investing can considerably increase your winning odds without you having to do actually anything at all. Most binary options signal providers provide winning rates of around 70% to 80%. Such winning rates can definitely make sure that you will be making profits all the time.
What you have to remember is that signal trading should not just be used on making one or two trades. Traders may as well lose a few times now and then on individual trades. The idea is that overall on the long term traders will always be able to make profits.
As such, you should perhaps trade with low amounts of money per trade initially. If you start signal trading now, you may as well lose the first 10 trades you make but after that you may win the next 100 in a row. If you traded with large amounts per trade, then those first 10 would have resulted in you losing all your money.
So, better just trade with small amounts like $10-$30 initially. You may increase this once your bankroll will become very large after a while. With signal betting in financial betting you may even permit yourself to trade with $100+ per contract a few weeks, perhaps months after you started using this service.
You just have to be patient and take it very slowly in the beginning.
If you are interested in learning more about how binary options signal trading works then check out our additional pages about this subject. On these pages we’ll teach you everything about how to find the best signal providers and which are the ones you should better avoid.
We’ll also show you various signal trading strategies you can use in order to dramatically increase your winning odds. So, what are you waiting for? Check them out now!