Simply put, copy trading allows you to copy trades placed by other traders. The basic goal is to find another investor with a proven track record, and begin copying their trades. Their success may continue and you will be on the winning side of things but if trades do not go in their favour then you will also be copying their losses.

Remember to always monitor and keep up to date with the trading performance of the signal providers you are copying.

When we talk about copy trading, there are usually three parties involved:

• Provider - This is the trader whose trades are being copied. Sometimes they are also referred to as a "Master Trader" or "Signal Provider".

• Copier - This is the person copying the provider's trades, using their own trading account.

• Broker - The broker provides access to the copy trading platform (like an app or MetaTrader 4) which allows the provider and copier to connect.