Copy Trading
Copy trading mirrors another trader's positions automatically - a way to outsource execution while keeping your own account.
Copy trading mirrors another trader's positions into your account automatically. The result depends on the trader you copy, and their losses hit your account just like your own.
Copy trading automatically mirrors the trades of a selected trader into your own account, in proportion to your balance. It is offered by many brokers as a built-in feature and by platforms like eToro as their core product. The quality of the strategy depends entirely on the trader you copy: their track record, risk management and drawdown history. Past performance is no guarantee, and copied losses hit your account the same way as your own.
How It Works
- You allocate a portion of your account to a signal provider
- Their trades are copied in proportion to your allocation
- Platforms show track records, drawdown and risk scores
Trading Tips
Judge providers on drawdown and consistency, not just headline returns
Check whether the provider trades the same instrument sizes you can afford
A copied loss is a real loss - size allocations like any other position
Related Terms
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