Following trading strategies, which is described by the terms 'following' or 'follower', can be done in different ways. If you invest in an actively managed fund, i.e. buy fund units via your house bank or directly on the stock exchange, you invest in the trading strategy of the fund company that launched the product. The price per share is determined from the individual transactions of the fund manager and the performance derived from them. Social trading follows a similar concept. Signal providers, signal information services, trading system developers - to name just a few typical examples - allow third parties access to the strategies underlying the respective systems. How the signals or trading strategies can be used depends on the technical implementation. Signals information services are usually editorial descriptions created in text form and provided to interested parties via electronic communication media such as email or messenger. Signals can be transmitted via push messages or via SMS. In all of the aforementioned constellations, the decision lies with the recipient of the information as to which downstream action should be carried out. If there is the possibility to subscribe to signals that trigger fully automatic trading transactions, this is generally referred to as copy or mirror trading, two concepts within social trading.
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