Many institutional investors and banks advised clients not to trade
currency during the market volatility in the lead-up to the United Kingdom’s recent vote to the leave the European Union.
Clients were advised against putting money into a market amid fears that liquidity may dry up amid market uncertainty. But on the retail side, online Forex trading platforms saw an increase in volume, which continued even after the surprising result of the British voting to leave the European Union.
Many Forex platforms, including Oanda, reported volumes four times larger than average on the day after the Brexit vote.
Many have attributed the high volumes in online retail Forex trading, even during times of extreme volatility, to the feeling of confidence and security offered by copy trading. Copy trading is a feature on social trading platforms that allows users to set up their accounts to automatically copy the investment moves of experienced and successful traders.
Users on copy trading platforms can view the investment profiles of others, much like the way one can see friends’ profiles on Facebook. They can then select which traders, based on their past investment histories and techniques, to follow. These traders’ moves can either be copied automatically with a certain portion of one’s investment portfolio, or on a case-by-case basis.
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