eToro launched responsible trading scheme to save the beginners of forex from harm of emotional decision making that can produce excessive risks. Novice traders are often inclined to listen to their “gut feelings”, because they have not acquired necessary experience in financial trading to make balanced and well-versed choices.
For example, a person unfamiliar with the FX market may think it is a good idea to start online trading with the highest leverage in order to maximize profits. However, in fact, it exposes their trading positions to maximum threat. This is in particular true in the volatile markets with a high level of uncertainty.This type of forex strategies is not limited to the leverage settings. It also shows in online trading diversity, or even in social trading when the beginner copies other experienced traders through eToro’s social investment network.
Therefore, eToro provides the forex beginner with the following safety net:
Default leverage settings of 1:100 max
Maximum 20% from available balance can be placed in one trade
Maximum 20% total balance to copy one trader
The responsible trading combined with the social networking concept and excellent user friendly trading environment helps the beginners to avoid losing their deposit on once and prevents hard sociological distress.
Since the launch of the responsible trading scheme eToro observes a noticeable 20% improvement in online trading results and trader longevity. However, forex traders who are not interested in limitations of responsible trading can disable this option easily, and get access to the complete range of trading options.
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