Copy trading
Also called: copytrading · social trading · mirror trading
Definition
Copy trading is an exchange feature that automatically mirrors another trader's positions in your own account, in proportion to the amount you allocate.
This entry is shown in English.
How Copy trading works
On copy trading platforms, experienced traders, often called lead traders, publish their performance. You pick one, allocate funds, and the system opens and closes trades in your account when they do. OKX, Bybit and Bitget all offer copy trading, for both spot and futures, though the details differ.
Most lead traders earn a share of their followers' profits, commonly a profit-sharing percentage on net gains. You keep control over settings such as the amount per trade, a maximum position size, leverage limits and a stop loss for the whole copy portfolio. Check whether the copy follows the lead's leverage or uses your own setting.
The main risks are that past results do not guarantee future ones, futures copy trading can be liquidated just like manual trading, and your entry price can differ slightly from the lead's because of slippage. Look beyond headline return: check maximum drawdown, how long the track record is, the number of followers and how much capital the lead trader risks themselves.
Example
Suppose you allocate 1,000 USDT to copy a futures trader with a 10% profit share. The lead uses 5x leverage and puts 20% of their balance into each trade, so your account opens a 200 USDT margin position worth 1,000 USDT. If the price moves 4% in the lead's favour, your position gains 40 USDT and you pay 4 USDT profit share. If it moves 4% against, you lose 40 USDT with no profit share. A 20% move against at 5x would wipe out that 200 USDT margin.
Common mistakes
- Picking a lead trader based only on a 30-day return that came from one lucky high-leverage trade.
- Copying without setting a total stop loss for the copy portfolio.
- Allocating money you need soon, without accounting for drawdowns that even good traders experience.
Learn and practise
Try it on an exchange
OKX offers this. Sign up through our link and the code below is applied.
nexu888Open OKXFAQ
Is copy trading profitable?
It can be, but results depend entirely on the trader you copy and the market. Many followers lose money when they choose leads by short-term returns alone.
Can I lose more than I put into copy trading?
On most exchanges, losses are limited to the funds allocated to the copy, but futures copies can lose that full amount through liquidation.