What is copy trading and how does it work?

Copy trading automatically mirrors the trades of another trader you choose in your own account, in proportion to the capital you allocate. You keep control of your money, but the risk — and the losses — stay yours.

How does copy trading work?

You pick a trader on a platform, decide how much capital to allocate to copying them, and from then on their trades open and close in your account automatically, scaled to your allocation. You can stop copying or close positions whenever you want.

How is it different from a managed account?

In copy trading the trades happen in your account and you keep control at all times. In a managed account, by contrast, the manager trades a pooled fund and you only share in the result. It's another way of delegating your trading, but with more autonomy on your side.

What are the risks?

More than they first appear:

• A trader's strong past record doesn't guarantee their future results.
• Many signal providers trade heavily leveraged: you copy their risk, not just their wins.
• Delays and slippage when mirroring, plus fees that eat into your net result.

How do you choose who to copy?

Don't look only at the return. Seek a long, verified record that includes the drawdown, check what risk per trade the trader takes, and be wary of accounts that show only the good months. Copying someone means inheriting their risk management: choose that management, not the promise of profits.