Given the continuous expansion of stock markets and forex trading, past and even now, Copy Trading has become the preferred method for Indian traders looking to make money without spending time looking at charts. But what is copy trading exactly and how can you get started if you’re a beginner in India? Let’s simplify it.
What is Copy Trading?
Copy Trading is a new trading style that allows you to automatically copy an expert traders trades. This means if an expert trader buys or sells a stock or currency pair then the same will happen in your trading account without you making a trade manually.
Simply put, copy trading is like following a chef's recipe: you're not cooking your meal exactly as you want it, you're following their instructions/steps.
Why is Copy Trading trending among Indian traders.
✔️ No requirement for in-depth knowledge of market economics
✔️ Time efficient for working professionals.
✔️ Access to master traders from all over the globe
✔️ Can be integrated into automated trading software and application programmable interfaces
✔️ Broker options include Zerodha, Angel One, Alice Blue, and Goodwill Broker when using Combiz Copy Trading Software.
How Copy Trading Works In India?
Below is how copy trading works in general for Indian traders.
Select a Copy Trading Service:
You can select something like Combiz Copy Trading Software that supports Indian stock brokers.
Select a Master Trader:
You can scroll through a list of master traders, view their performance, and select from all the traders to replicate their strategy.
Connect Broker Account:
Connect your Zerodha, Angel One, or other brokerage account to copy trading through an application programmable interface.
Auto Execute Trades:
Every time the master trader trades, it is executed synced with your brokerage account in real-time.
Monitor and Change:
Trade monitoring can be based on your monitor window, set a risk limit and change traders, or any changes you want to make.
Copy Trading, Is It Legal in India?
Yes, Copy Trading is legal in India. However, it needs to comply with SEBI rules. Traders need to use a SEBI compliant broker and avoid Ponzi-type platforms. Using reputable software such as Combiz you can be assured that the system will be compliant and trades will be executed securely.
What Markets Can You Copy Trade?
In India, copy trading is used mostly in:
Equity (stocks) Trading,
Commodity Trading
Currency Trading
Futures & Options (F&O) Trading.
You can also copy trade in international forex and crypto (on global platforms) but when trade the stock market in India ensure you are using with a SEBI approved broker.
Pros of Copy Trading for Indian Traders
It’s beginner friendly,
It’s automated (no manual effort involved),
You learn while you earn,
You can build a diversified portfolio of different traders,
You can start day trading for as low as ₹5000 with some brokers.
Cons/Risks You Should Be Aware Of
As with all trading you should also not assume that copy trading is 100% not risk free. The master trader can take a wrong trade, or you can just get lucky with market volatility. It’s always best to:
Start small,
Diversify among traders,
Use stop-loss and money management features.
Getting Started with Copy Trading in India
If you’re ready to start trading, the first step will be to create an account with our partner broker (for example, Zerodha or Angel One) and to create an account with a copy trading platform (such as Combiz), and link it your broker account, then simply choose an expert trader to copy.
Conclusion
Copy trading is an intelligent choice for newbies in India to enter the stock market with no technical skills. You can’t completely avoid risk, but you can follow the traders who are the experts and trade with confidence on reputable platforms.
So if you’re a beginner in the stock market, and want to ease the journey a little, copy trading could be a great option to start.
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