Social Trading vs. Copy Trading: A Breakdown

Social trading and copy trading are similar in that they both involve learning from and following the trades of other traders. However, there are key differences in their approach and level of involvement.

Social Trading
Focus: A broader concept that emphasizes community interaction, knowledge sharing, and learning from others.
Process: Traders can follow the trades of others, discuss strategies, and share ideas.
Involvement: Requires active participation and decision-making. Traders can choose which trades to follow or copy based on their own analysis and judgment.

Copy Trading
Focus: A more automated approach that involves copying the trades of successful traders without manual intervention.
Process: Traders set up automatic rules to replicate the trades of chosen traders.
Involvement: Less active, as trades are executed automatically.