Social Trading Index
We already know that eToro’s groundbreaking OpenBook social trading network and CopyTrader technology enables traders to create “people-based” portfolios wherein they manage the experts they copy instead of traditional instruments. So what else is new?
Well, since you asked, everything is new, because we’ve just released yet another game changer in the shape of “Social Trading Indices”.
You might already be familiar with stock market indices, such as the DJ30 or the NASDAQ100 indices that we offer for trading. Most stock market indices are calculated based on the top companies whose shares are traded on a particular exchange according to certain criteria such as market capitalization or share volume.
Social trading indices are similar to that, only they’re made up of people instead of companies, and you can create them based on your own criteria and then share them with everyone else on the network!
What is the Social Trading Index
We at eToro realize that different traders have different styles and value different qualities in other traders’ performance. Using your own parameters, you can generate a social trading index which selects the best performing traders on the OpenBook network based on the statistics that matter to you. Once you generate a search using the “Investor Finder” feature, you can choose up to 20 top ranking traders in your search result to create a Social trading index. The index you created will then be published and anyone on the network will be able view it and add it to their social trading indices.
Just like a stock index, your social trading index will also update itself once a week to discard traders who no longer fit the index criteria, and add new ones who do. What’s more, you can calibrate the index yourself to ensure that the best traders have more weight than other traders in the index.
Don’t feel like making your own index? As you’ve probably already guessed, since social trading indices are public, you can simply choose an existing index and see how well it’s doing for its creator by checking out their stats.
Social trading indices is yet another eToro original which we know is going to take your social trading to the next level. Head over to the Rankings page on eToro OpenBook to give it a try!