Social Trading

Social trading is a service that allows investors to replicate the operational movement of expert traders. Social trading requires little to no knowledge about financial markets and users only need to make a correct selection of traders to follow and learn from. This assessment is available through transparent financial statistics that provide insight about the user’s successful trades and their diversification of financial instruments.

Social trading provides a model to compare and copy trades, techniques and strategies. Prior to the advent of social trading, investors and traders relied on fundamental technical analysis to form their investment decisions. With social trading, investors and traders can integrate social indicators from other traders into their investment decision-process.

Social trading has been described as a way to shorten the learning curve from novice to experienced Forex trader [?]. Traders can interact, watch others take trades, then duplicate their trades and learn what prompted the top performer to take a trade in the first place. By copying trades, traders can learn which strategies work and which do not work [?].

LX provides the following social trading features for its users:

• A social profile with username, avatar, approximate regional location. This profile represents the user’s account.

• Trade history data: user's success rate, user success ranking, average daily profit/loss, annual gains percentage.

• User friends and friend requests.

• Trader risk rating, defined by system analysis.

• Community position rating.

• Successful investment ranking.