History[ edit ] Copy trading and mirror trading developed from automated tradingtranzacționarea copiilor known as algorithmic trading around It was an automated trading system where traders were sharing their own trading history that others could follow. Tradency was one of the first to propose an tranzacționarea copiilor system incalled by them Mirror Trader.
A trader could host their own trading strategy on the systems with the trading records showing the performance of that strategy.
Other users could then decide to mirror-copy on their account all the transactions generated from that strategy. Sinceit has become an tranzacționarea copiilor popular feature among online financial trading brokers as a way to enable less experienced traders to benefit from the trading decisions of investors whom they deem successful.
Yaniv Altshulershowed tranzacționarea copiilor traders on tranzacționarea copiilor eToro social investment network who benefited from "guided copying", i. Altshuler has been collaborating with Professor Alex "Sandy" Pentland of MIT on a study that aims to find a "sustainable" social trading mechanism in the aim of fine tuning traders' ability to benefit from copy trading. Copy trading may however also have potentially adverse effects for tranzacționarea copiilor.
A recent experimental study argues that merely providing information on the tranzacționarea copiilor of others may tranzacționarea copiilor to a significant increase in risk taking.
This increase in risk taking may even be larger when subjects are provided with the option to directly copy others. From this perspective, copy trading may lead to excessive risk taking. As such, the FCA has sent letters tranzacționarea copiilor those companies providing copy trading services notifying them of their intention to classify them as investment managers.
Some platforms also enable traders to place Stop Loss orders on the entire copy trading relationship, allowing traders to control the risk of their copy trading activity based on the individual copied investors Compared to social trading[ edit ] Various financial trading operators offer copy trading capabilities tranzacționarea copiilor part of a larger social trading platform. Social trading usually includes the ability to connect tranzacționarea copiilor other investors using the platform in social ways comments, likes, link sharing etc.
Some platforms also provide ways to sort and rank traders according to certain performance parameters, thus making it easier for traders to find potential investors to copy.