Copy trading is an investment strategy that allows individuals to automatically replicate the trades of experienced and successful traders. This method is particularly popular in the forex and cryptocurrency markets but can also be applied to stock trading and other financial instruments. Here's how it typically works: 1. **Platform Selection**: Traders choose a brokerage or trading platform that offers copy trading services. These platforms often provide a list of traders, along with their trading performance metrics, strategies, and risk levels.
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