How Does Copy Trading Work?

How copy trading works, step by step

1. Choose a trader or strategy. Review the available information, trading history, markets and associated risks.
2. Allocate funds. Decide how much of your account you want to allocate to copy trading.
3. Set available controls. Where available, use allocation limits or other risk controls provided by the platform.
4. Trades are copied automatically. Positions may be opened, modified or closed in your account based on the selected trader or strategy. Execution and results may differ due to market conditions, spreads, slippage and other factors.
5. Monitor your account. Copy trading does not remove the need to monitor your positions and risk.
6. Stop copying when appropriate. You may be able to pause or stop copying, subject to the platform’s features and applicable terms.

Important: Copy trading involves a risk of loss. Past performance does not guarantee future results.

How proportional copying works

Copy trading generally uses proportional sizing, meaning copied positions are adjusted based on the amount you allocate and the platform’s copying settings.

For example, if you allocate $1,000, the size of a copied position may be adjusted according to the source trader’s position and your allocation. The actual amount and exposure can vary depending on leverage, margin requirements, market conditions and platform settings.

As a result, traders copying the same strategy may experience different profit or loss amounts. Past performance does not guarantee future results.

The risk and allocation controls you get

Depending on the platform, copy trading may provide controls to help manage your exposure:

• Allocation size: Choose how much to allocate to a strategy.
• Risk limits: Where available, set limits that may pause or stop copying if specified conditions are reached.
• Adjust allocation: Increase or reduce your allocation, subject to the platform’s features.
• Manual controls: Where available, you may be able to close or manage copied positions manually.
• Stop copying: You may be able to stop copying, subject to the platform’s terms and functionality.

These controls can help manage risk but do not eliminate it. CFD trading involves the risk of loss, and leverage can magnify both gains and losses.

A note on WRPRO’s copy trading

WRPRO’s copy trading uses an automated, rules-based strategy rather than copying an individual trader. You allocate funds and, subject to the platform’s settings, trades are automatically executed in your account.

For more information on fees, account options and how to get started, see our guide, Copy Trading Explained.

Frequently asked questions

How does copy trading work step by step?

You choose a trader or strategy, review the available information, allocate funds, and set any available risk controls. Trades are then automatically replicated in your account according to the platform’s settings. You should continue to monitor your account and can stop copying subject to the platform’s functionality.

How are copied trades sized?

Copied trades are generally sized according to your allocation and the platform’s copying settings. The size and exposure may differ from the source trade due to leverage, margin, execution and market conditions.

Can I control the risk when copy trading?

To a degree. Depending on the platform, you may be able to set allocation limits, adjust your allocation or use other risk controls. These controls can help manage risk but do not eliminate it. Leverage can magnify both gains and losses.

What happens if I add more funds while copying?

Increasing your allocation may affect the size of future copied trades, depending on the platform’s settings. Check the applicable terms and platform functionality before making changes.

Can I stop copy trading at any time?

You may be able to pause or stop copying, subject to the platform’s functionality and terms. The treatment of any open copied positions may vary depending on the platform’s settings.