📖 Financial Lexicon Term
What is Copy Trading?
A feature allowing traders to automatically replicate the trades of experienced traders. Popular platforms include eToro, ZuluTrade, and AvaSocial.
Detailed Explanation
Copy Trading is a form of social trading that programmatically syncs your brokerage account with a provider's portfolio. When the followed provider opens a position, the exact same trade is executed in your account proportionally, allowing for automated capital growth.
💡 Practical Trading Example
You allocate $1,000 to copy a professional trader. When they risk 1% of their portfolio on a gold trade, your account instantly buys gold risking $10.