What It Takes to Be A Top Popular Trader
What it takes to be a top popular trader
Becoming top of a Popular Trader Program is common among many traders using certain exchange platforms, especially when considering Copy Trading. Achieving certain requirements can see a trader benefit from each level achieved to become a Popular Trader, which can include benefits such as an additional monthly repayment to their capital, or earning a percentage of the amount of assets in their portfolio.
There are certain steps and risk requirements that a trader must follow in order to achieve this status, including having proven good statistics and strategies of investment, and offering a certain value to the trading community. A Popular Trader status can see an investor become more likely to be copied in a social trading environment, as they are deemed more trustworthy or experienced. But what exactly does it take to reach this exclusive level?
The initial requirements usually consist of a minimum capital to invest with, deposited into the trading account. This amount increases as each tier of the Popular Trader is reached, as well as the amount of assets required to be within the portfolio.
From there, the top level is maintained as long as the investor continues to adhere to the Responsible Trading Requirements that are implemented by the trading exchange platform. This is essential if the investor is involved in Copy Trading, as they are responsible for the funds of those copying their strategies.
A maximum risk score must also be maintained for at least two months. This is a numerical value that shows how at-risk others are when they are looking to copy their investment strategies, in terms of Copy Trading, and to achieve a better understanding of the person in which they are mirroring. Depending on the exchange platform, this should be calculated to be between six or seven, as ten is an extremely high risk and zero is low. This calculation takes into account several factors endured by the investor including the largest amount of loss incurred, the types of assets included in the investor’s portfolio, and the leverage that has been used to carry out the trade.
This leads onto the next requirement, which is a certain leverage restriction that a Popular Trader must adhere to. This is commonly achieved by Contract for Difference trading of the Forex market, as it easy to monitor the leverage amount with this type of trading compared to the traditional way of investing, speculating on the movement of the underlying currency pair. The CFD is also delivered based on the difference between the prices of a pair of currencies when opening and closing the contract, rather than the set amount of the base currency.
A successful trader will take the time to learn more about forex trading and how it works conventionally, to understand not only how it works in terms of CFDs, but how it can then be incorporated into their portfolio to abide by the leverage requirements and enhance their ability to become a top Popular Trader. Investing in the forex market via CFDs allows access to advanced trading tools and international markets, which can reflect well in the strive for the next Popular Trader level. As the world’s largest financial market, it’s worth considering trading currencies using CFDs, as this also diversifies the portfolio and increases the possibility of meeting the requirements of a top Popular Trader level.
It is common with Popular Trader programs that the investor is required to maintain that level for certain period of time – usually around two months – before proceeding to the next stage. By consistently following the requirements mentioned, an investor can benefit from the rewards seen by achieving that top level.
