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Social trading – Is it a free for all?

14 February 2014

Committed traders spend thousands of hours absorbing, processing and acting on market information. “Social” empowers them to post, receive, and thus exchange information, 24*7 with others around the globe.

P2P is THE new paradigm. Unsurprisingly, traders have embraced P2P with gusto.

Social and traders: isn’t this exciting? How about Social trading / Copy-trading / Auto-trading / Mirror trading??

Here’s our take! (Hint: knowing that trading is Intellectual Property, you won’t be surprised!)

Social trading & collaboration

Trades are a time sensitive IP produced by hard to acquire trading skills: knowing a good trader’s current market outlook, or the trade that he just placed is VERY valuable information.

On this account, “social” holds promise. Trading rooms & clusters of “Twitter traders” have formed on a validated psychology principle: group beats individual decision-making. Your information helps me; my information helps you, it’s a win-win, “social trading” here we go!

Collaboration is everything in social trading

 

 

 

 

 

 

Almost, but not quite!

Social trading = free for all?

There’s this tiny little thing: for this to work, my contribution has to be as valuable to you as your contribution is valuable to me.

Otherwise, imagine this conversation between Trader Johnnie and George “Quantum” Soros in 1992. Johnnie, who just placed his first ever trade, reaches out: “Hey George, I’m a trader, you’re a trader, let’s social trade: I’m long the GBP, any thoughts?”.

Absurd, and therefore unlikely! Animal Farm’s unforgettable Napoleon summed it up:

Animal Farm and social trading

 

 

 

“All traders are equal, but some trades are more equal than others”

 

 

 

Free “Social trading” as described above = barter. Barter works… AS LONG AS all parties to it exchange equally valuable contributions.

Luckily for George, trading is an IP industry: no amount of Johnnie trades are of interest to George (this is not to say that knowing ALL trades by ALL Johnnies at any point in time wouldn’t!). Barter and IP are difficult soul-mates: a sustained IP exchange where a trader consistently contributes above average only works if he really likes philanthropy: the communist trader – a very strange creature, indeed!

Social trading – our take

“Social trading” would work IF all traders had similarly valuable IP to contribute. But they don’t. The moment a trader contributes more than he gets, his incentive is to walk. Once he does, the second best trader, who also contributed above average and now also lost access to the best trader’s IP, follows suit. This triggers a race to the bottom that soon becomes noise. At its worst, this is Twitter for traders. Everyone has trades to tweet, alas not all trades are equally valuable.

Social trading – what’s next?

Barter is not the way to exchange valuable information: this ignores the dynamics of intellectual property. Existing “social trading” propositions fall short on this account and thus have flaws that greatly outweigh their benefits to good traders. What’s worse, they’re a self-selection magnet for all sorts of bad stuff that smart traders should best stay away from. Groucho Marx knew when he said: “I wouldn’t join a club that admitted me as a member!”

At Darwinex, we know that, given the right set-up, good traders have valuable IP to contribute, and can benefit from collaboration. Our investor platform is already in private beta, so stay tuned!

 

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apalancamiento esma

ESMA leverage on DEMO trading accounts as of July 26th

18 July 2018

New ESMA rules are around the corner and we want you to be prepared. Between July 24th and 25th, we’ll start modifying leverage conditions of assets on demo trading accounts. This way, as of July 26th, you’ll be able to check out how new ESMA conditions affect your demo accounts and be prepared for the […]

New ESMA rules are around the corner and we want you to be prepared.

Between July 24th and 25th, we’ll start modifying leverage conditions of assets on demo trading accounts. This way, as of July 26th, you’ll be able to check out how new ESMA conditions affect your demo accounts and be prepared for the leverage transition on real accounts.

Note that this only affects demo trading accounts. Transition to ESMA leverage restrictions on real trading accounts will follow the announced roadmap.

Darwinex Amended Trading Hours (US Independence Day)

27 June 2018

Please note the amended Darwinex trading hours for the upcoming US Independence Day holiday on 3 & 4 July 2018 (all times are in UK time).  Instrument 3 July 2018 (Tue) 4 July 2018 (Wed)  FX 22:05 Mon – 22:00 Tue 22:05 Tue – 22:00 Wed   DARWINS 22:05 Mon – 22:00 Tue 22:05 Tue – 22:00 Wed […]

Please note the amended Darwinex trading hours for the upcoming US Independence Day holiday on 3 & 4 July 2018 (all times are in UK time).

 Instrument 3 July 2018 (Tue) 4 July 2018 (Wed)
 FX 22:05 Mon – 22:00 Tue 22:05 Tue – 22:00 Wed
  DARWINS 22:05 Mon – 22:00 Tue 22:05 Tue – 22:00 Wed
 COMMODITIES    
Gold* 23:01 Mon – 21:59 Tue 23:01 Tue – 18:00 Wed
Silver* 23:00 Mon – 22:00 Tue 23:00 Tue – 18:00 Wed
Platinum* 23:00 Mon – 22:00 Tue 23:00 Tue – 18:00 Wed
Palladium* 23:00 Mon – 22:00 Tue 23:00 Tue – 18:00 Wed
US Crude* 23:00 Mon – 22:00 Tue 23:00 Tue – 17:45 Wed
Natural Gas* 23:00 Mon – 22:00 Tue 23:00 Tue – 17:45 Wed
 INDICES    
Australia 200 23:00 Mon – 22:00 Tue 23:00 Tue – 22:00 Wed
 Europe 50 23:00 Mon – 22:00 Tue 23:00 Tue – 22:00 Wed
France 40 23:00 Mon – 22:00 Tue 23:00 Tue – 22:00 Wed
Germany 30 07:00 – 21:00 07:00 – 21:00
Spain 35 07:00 – 19:00 07:00 – 19:00
Japan 225* 23:00 Mon – 18:15  Tue 23:00 Tue – 18:00 Wed
 UK 100 23:00 Mon – 22:00  Tue 23:00 Tue – 22:00 Wed
 US SPX 500* 23:00 Mon – 18:15 Tue 23:00 Tue – 18:00 Wed
 US Tech 100* 23:00 Mon – 18:15 Tue 23:00 Tue – 18:00 Wed
Wall Street 30* 23:00 Mon – 18:15 Tue 23:00 Tue – 18:00 Wed
 CRYPTO    
All Crypto Instruments  22:05 Mon – 22:00 Tue 22:05 Tue – 22:00 Wed
*Amended Darwinex trading hours.

As always, at info@darwinex.com we’ll be happy to assist you!

Turkey General Elections on June 24th, 2018

21 June 2018

On Sunday June 24th, 2018, the first  round of general elections will be held in Turkey. If you plan to stay in the market during the weekend in pairs related to the Turkish lira (USDTRY, EURTRY y GPBTRY), please make sure you post margin / equity in your account as volatility is expected to increase […]

On Sunday June 24th, 2018, the first  round of general elections will be held in Turkey.

If you plan to stay in the market during the weekend in pairs related to the Turkish lira (USDTRY, EURTRY y GPBTRY), please make sure you post margin / equity in your account as volatility is expected to increase heading into the elections and upon Sunday’s market open. Although we are not planning to introduce changes to our margin requirements, please be informed that Darwinex reserves the right to change margin requirements as we move closer to the elections and depending on the outcome.

Should we decide to introduce any changes to our trading conditions, we’ll  contact you via email, blog post and social media as soon as possible.

Please do not hesitate to contact us at info@darwinex.com should you need assistance.

Darwinex Trading Hours for ucomping Bank Holiday in Australia (11 June 2018)

7 June 2018

Please note the amended Darwinex trading hours for the upcoming Bank Holiday in Australia on 11 June 2018 (all times are in UK time).  Instrument Trading Hours  FX 22:05 Sun – 22:00 Mon   DARWINS 22:05 Sun – 22:00 Mon  COMMODITIES   Gold 23:00 Sun – 22:00 Mon Silver 23:00 Sun – 22:00 Mon Platinum 23:00 Sun – 22:00 Mon Palladium 23:00 Sun – 22:00 Mon US Crude 23:00 […]

Please note the amended Darwinex trading hours for the upcoming Bank Holiday in Australia on 11 June 2018 (all times are in UK time).

 Instrument Trading Hours
 FX 22:05 Sun – 22:00 Mon
  DARWINS 22:05 Sun – 22:00 Mon
 COMMODITIES  
Gold 23:00 Sun – 22:00 Mon
Silver 23:00 Sun – 22:00 Mon
Platinum 23:00 Sun – 22:00 Mon
Palladium 23:00 Sun – 22:00 Mon
US Crude 23:00 Sun – 22:00 Mon
Natural Gas 23:00 Sun – 22:00 Mon
 INDICES  
Australia 200* 08:10 – 22:00
 Europe 50 23:00 Sun – 22:00 Mon
France 40 23:00 Sun – 22:00 Mon
Germany 30 07:00 – 21:00
Spain 35 08:00 – 19:00
Japan 225 23:00 Sun – 22:00 Mon
 UK 100 23:00 Sun – 22:00 Mon
 US SPX 500 23:00 Sun – 22:00 Mon
 US Tech 100 23:00 Sun – 22:00 Mon
Wall Street 30 23:00 Sun – 22:00 Mon
*Amended Darwinex trading hours.

As always, at info@darwinex.com we’ll be happy to assist you!

Important announcement re swaps

31 May 2018

Please be informed that starting on Thursday, 7 June 2018, Fx and XAUUSD swaps will be charged in triple size on Thursdays (instead of Fridays). Below you can find a brief summary of the different swaps charges for different assets.  Instrument Swaps   FX Daily at 17:00 NY City time (in triple size on Thursdays)   […]

Please be informed that starting on Thursday, 7 June 2018, Fx and XAUUSD swaps will be charged in triple size on Thursdays (instead of Fridays).

Below you can find a brief summary of the different swaps charges for different assets.

 Instrument Swaps 
 FX Daily at 17:00 NY City time (in triple size on Thursdays)
  COMMODITIES
Gold Daily at 17:00 NY City time (in triple size on Thursdays)
Rest of Commodities Daily at 17:00 NY City time (in triple size on Wednesdays)
 INDICES  Daily on market close (in triple size on Fridays)
*Since Thursday, 7 June 2018.

As always, at info@darwinex.com we’ll be happy to assist you!

Amended Trading Hours due to US Memorial Day & UK Spring Bank Holiday (28 May 2018)

22 May 2018

Please note the amended Darwinex trading hours for the upcoming US Memorial Day & UK Spring Bank Holiday on 28 May 2018 (all times are in UK time). Important: as explained in our Help Section, if you open / close an investment in a DARWIN that has an open trade in an asset which market […]

Please note the amended Darwinex trading hours for the upcoming US Memorial Day & UK Spring Bank Holiday on 28 May 2018 (all times are in UK time).

Important: as explained in our Help Section, if you open / close an investment in a DARWIN that has an open trade in an asset which market is closed (see amended trading hours in red below), the transaction will not be carried out immediately,  the investment will show up in your investor platform once it has been executed by our system when the index/commodity resumes trading on Monday night.

 Instrument Trading Hours
 FX  22:00 Sun – 22:00 Mon
  DARWINS  22.05 Sun – 22.00 Mon
 COMMODITIES
Gold* 23:00 Sun – 18:00 Mon
Silver* 23:00 Sun – 18:00 Mon
Platinum* 23:00 Sun – 18:00 Mon
Palladium* 23:00 Sun – 18:00 Mon
US Crude* 23:00 Sun – 17:45 Mon
Natural Gas* 23:00 Sun – 17:45 Mon
 INDICES
Australia 200 22:05 Sun – 22:00 Mon
 Europe 50 22:05 Sun – 22:00 Mon
France 40 22:05 Sun – 22:00 Mon
Germany 30 07:00 – 21:00
Spain 35 07:00 – 19:00
Japan 225*  22:05 Sun – 18:00 Mon 
 UK 100* Closed
 US SPX 500* 22:05 Sun – 18:00 Mon
 US Tech 100* 22:05 Sun – 18:00 Mon
Wall Street 30* 22:05 Sun – 18:00 Mon
*Amended Darwinex trading hours.

As always, at info@darwinex.com we’ll be happy to assist you!