Copy trading
Automatically mirroring another trader’s positions in your own account. You still carry the full risk of every copied trade.
In practice
A follower copies a trader at a fixed ratio. If the trader risks 2% per trade, the follower’s account risks roughly the same percentage on every copied trade.
Choosing who to copy by recent returns alone. Look at drawdown and how long the record is.
Related terms
Signal provider
A person or service that publishes trade ideas for others to…
Trade copier
Software that copies trades from one account or signal source into…
Balance
Your account value from closed trades, deposits and withdrawals,…
Broker
The firm that gives you access to the market, holds your funds and…
Cent account
An account denominated in cents, so balances and lot values are…
Commission
A fixed fee per lot charged by some account types, usually…