Australia is the sixth-largest country in the world by total area. Canberra is its capital city, and Sydney is the largest one. Australia is immensely urbanised, containing metropolitan regions such as Melbourne, Brisbane, Perth, and Adelaide. It is one of the megadiverse and highly developed countries in the world. As reported, the country ranks 14th in the worldwide largest income economy, with a very high gross domestic product per capita and a low poverty rate.
The Australian dollar is the currency of the country, used in the stock exchange and attributed to the country’s large primary securities exchange. It is the fifth most traded currency in the world. The country’s foreign exchange market is 7th among the developed countries with the largest global turnover. With Australia’s engagement to the foreign exchange market, the country has expanded to other trading options like copy trading in Australia.
Copy Trading in Australia
Australia is one of the countries that provide platforms for copy trading. Copy trading is an innovative investment process in which new and experienced traders take part in the financial market through the employed traders executing all the transactions for them. In copy trading, the investor could opt to automatically copy the operations done by the trader, replicating the trader’s execution to his account. With copy trading, Australians get to participate in various social trading forms given their busy work schedules and do not have enough time to watch the markets all day.
The Copy Trading Platform
Copy-trading players include the market, the broker, the trader, the investor, and the copy trading platform. There are several types of copy trading platforms used in the market. It is responsible for the signal replication tasks in the system, acting as the intermediate between the copy trader brokers and the investor brokers. The copy trading in Australia platform also monitors the replication of signals from the copy traders, proportionally replicating the trades of the copy traders.
The platform receives the data of every new trade sent by the broker and opened by the copy traders. Then the platform verifies the investors who want to copy the copy traders’ transactions as well as their replication settings. The platform provides the brokers with the details about the investors opening the new trade. And the brokers then order the investor’s trading account.
The stated copy trading processes are all automated, occurring in less than a second. Also, the copy trading system has undergone various standardisation protocols that prevent potential risks from happening.
The Advancement of Copy Trading
Copy trading is an evolution of automated or algorithmic trading in 2005, which features sharing options of the traders’ trading histories with one another. The auto trading system allows hosting of a trader’s strategy for transacting exchanges on the systems through the trading records indicating the performance of the strategy. And the other users could copy on their account the transactions shown in the trading records.
Several technical issues arose on the use of the auto trading system, including the submission of trading strategies the records without intending to do so. And since 2010, the concept of automated trading has reached its popularity across different financial trading institutions such as copy trading companies. Since then, this trading system has provided the less-experienced traders with the benefit of making the best out of the successful traders in the industry.