GLOSSARY · AUTOMATION
What is copy trading?
Copy trading automatically reproduces another account's trades on your own, sized to your balance, so you take the same positions as the account you follow without deciding anything yourself.
Also called: Mirror trading
What it means
A provider trades their own live account. Software watches that account and opens a proportional position on every subscriber account, usually within a second or two. You are not buying a strategy or receiving advice — you are duplicating someone else's executions, whatever they turn out to be.
Why it matters
Sizing is proportional rather than identical. If the provider risks 2% of their equity and your account is a tenth the size, you get a position a tenth as large risking the same 2%. That is the mechanism most people misunderstand: [copy trading](/learn/copy-trading) does not reduce risk, it reproduces it exactly. A provider who blows up takes their subscribers with them, at the same percentage loss.
What this changes in practice
The genuine trade-off against running a bot is control. A bot runs rules you can read, on your machine, with settings you own. Copy trading runs a person's judgement you cannot inspect, on their schedule, and you can stop it but never steer it. Which is better depends entirely on whether you want to understand what is happening to your money.
Related terms
- Social tradingSocial trading is copy trading presented as a network — leaderboards, follower counts, public pr…
- Signal providerA signal provider publishes their trades for others to follow, either as notifications you act o…
- Trade copierA trade copier replicates trades from one account to one or more others, either between local te…
- Performance feeA performance fee is the share of profit a copy trading provider takes from subscribers, usually…
Educational information only, not financial advice. Trading leveraged products carries substantial risk of loss. Last updated 2026-08-11.