Copy trading (also called social trading) allows you to automatically replicate the trades of experienced traders in real time. When the trader you follow opens, modifies, or closes a position, the same action is mirrored in your account proportionally. It provides access to professional strategies without requiring you to analyze markets yourself, though all trades still carry risk.
You allocate $2,000 to copy a trader with a 6-month track record of 15% returns. When they buy 1 lot of EUR/USD, your account automatically buys 0.2 lots (proportional to your allocation). Their profits and losses are reflected in your account in real time.
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