Social trading refers to the popular phenomenon of traders interacting with other traders when making trading decisions.
Social trading combines aspects of social media with online real-time trading in the financial markets.
Social trading ranges from traders using modified social platforms to discuss their trades and strategies, to literally copying the exact trades or portfolios of other traders.
This is why “social trading” is a common umbrella term for copy and mirror trading strategies.
Traders “copy” or “mirror” what other traders do.
Brokers often allow for experienced traders (often referred to as “leaders”) to allow novice traders (called “followers”) to copy their trading strategies and earn a percentage of the profits of those copying traders.
Given the recent popularity of social trading and its effectiveness in helping brokers grow trading volumes among their customer base, some forex brokers have gone as far as rebranding as “social trading brokers” or “social trading platforms”.