What is copy trading?Copy trading allows participants to replicate the trades placed by other, often more experienced traders in real time. The idea is to find a trader with a proven track record and begin copying their trades.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.How does copy trading work?Brokerages provide a copy trading software or application. In the app, traders that are copied are known as ‘signals’, while their followers are known as ‘copiers’.Traders sign up with the brokerage and link their accounts to the copy trading app.As the signals trade and build a track record, their performance data, including monthly returns and profitability, can be monitored through the app.Copiers select which signals to follow. Once a copier connects to a signal, every transaction executed by the signal is automatically replicated in the accounts of their copiers, proportionally adjusting for factors like available funds and risk preference.In return, the signal trader charges the copier a percentage of the profits.Is copy trading profitable?As mentioned before in the introduction, copy trading can be a profitable way of investment, and that answer is just a concise summary of a longer story. However, the worth of copy trading goes beyond the potential for financial gains. It's a pursuit that's well worth dedicating time to understand comprehensively.Read More -> Introducing Copy Trading: Leverage the Power of Experts | Binance Bloghttps://www.binance.com/en/blog/futures/introducing-copy-trading-leverage-the-power-of-experts-7211002276810535150#Source #Binance #BTC #etf #Launchpool #Trading #Copytrading