BinaryOptionsNow – The binary options industry is relatively new but it has already managed to attract a very large trader following. The sudden increase in the popularity of options trading also resulted in the recruitment of many new traders without any prior experience, social trading means to solve this.
Binary options brokers introduced the concept of social binary options trading. This concept was already successfully employed in the forex trading business many years before. Social options trading allows traders to share their experience between each other but also gives new traders the opportunity to copy the trades executed by other experienced traders.
There are many social options trading products on the market at this moment. Below you can find a description of the most common and most popular products of this kind.
Social Trading Networks
Social trading networks were the first types of social trading platforms introduced in the binary options business. The most important characteristic of these service providers is that they offer traders the possibility to interactively share their experience between each other.
These providers aren’t just simple forums on which traders can post, they are actual platforms that closely resemble mainstream social networks such as Facebook in their functionality. These platforms allow traders to follow and interact with each other. Traders may use these networks to automatically reveal their actions taken to the public, so that others players would be able to comment and give advice.
Using these platforms traders have the possibility to follow experienced traders and read their posts and well as evaluate the actions taken by them. Traders are also able to copy the actions performed by the traders they decided to follow. Features like these offer a competitive advantage to new traders.
Mirror Trading and Signal Trading
Mirror trading is an advanced form of social trading. In mirror trading, certain experienced traders are able to become so-called signal providers by allowing other traders to copy their actions. In exchange, signal providers will be rewarded with a share of the profits those traders that follow them have generated.
Obviously such services are extremely advantageous to new traders that don’t yet have experience in the options trading business. These traders are able to generate income right away. This is extremely beneficial for the industry as well become without such services the majority of new traders would probably quit because of losing to much.
Likewise, services like these allow new traders to learn the secrets of options trading. By analyzing the actions performed by experienced traders, new traders have the possibility to discover tips and secrets that they would have never discovered on their own or by just reading a few binary options trading eBooks.
Many binary options brokers already offer in-house signal and mirror trading services. The only thing signal providers and traders have to do to get started is to log into the mirror trading software offered by the broker. After this, the software will take care of everything for them.
There are however also many third party signal trading providers. Like actual brokers, these platforms give traders the possibility to sign up and follow and automatically copy the actions and trades performed by other advanced traders.
These are the most common social binary trading services offered at this moment. Given the rapid growth of the market as well as the popularity of social trading, we can conclude with a lot of certainty that new and more advanced social trading services will for sure be introduced in the future.