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Copy trading

How Forex Copy Trading Works

Copy trading works in four steps: a follower subscribes to a master with an allocation; the system listens for the master's trading activity; each event is translated into a proportionally sized operation on every follower account; and results are reconciled so failures are visible rather than assumed successful.

6 min read · Updated

Copy trading looks simple from the outside: the master trades, the followers trade. The reasons implementations differ in quality sit entirely in the details of how that translation happens.

Step 1 — Subscription

A follower selects a master and sets an allocation: how much of their account is committed to following that strategy. This allocation is what every subsequent sizing decision is computed against.

Step 2 — Observing the master

The system watches the master account for trading events — position opened, position closed, position partially closed, order modified. Each event becomes a task to apply across the follower set.

Step 3 — Proportional sizing

Each follower's position size is computed from the master's volume scaled by the ratio between the follower's allocation and the master's account. A follower with one percent of the master's capital takes roughly one percent of the volume, subject to the minimum volume the instrument permits.

Minimum volume is a real constraint. Below a certain account size, proportional sizing rounds to less than the minimum tradable lot, and the system has to either skip the follower or round up — which changes their risk. A good implementation makes this explicit rather than silent.

Step 4 — Reconciliation

Every operation either succeeded or did not. The system must record which, and surface the failures.

SituationWrong behaviourCorrect behaviour
Follower has insufficient marginRecord the trade as copiedRecord the failure; the follower is not in the position
Master order partially filledCopy full requested volumeCopy proportionally against the filled volume
Close operation fails at platformMark follower position closedKeep it open; flag for reconciliation
Follower below minimum lot sizeSilently skipSkip explicitly and make it visible
Failure modes and correct handling

The right-hand column is not exotic. It is simply what an honest system does, and the difference between the columns is the difference between a product and a liability.

See the follower and master views

The demo shows both sides of a copy relationship on sample data.

FAQ

Questions on this topic

The operation cannot be applied. A correct system records the failure and leaves the follower out of that position, rather than recording a trade that never happened.

Still have a question? See the full FAQ or ask us directly.

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