{"term":{"slug":"copy-trading","term":"Copy Trading","definition":"A method where trades are automatically replicated from one account to another. Most prop firms prohibit copy trading between multiple funded accounts, as it violates their terms of service around independent trading.","extendedExplanation":"Copy trading in the prop firm context usually refers to traders operating multiple funded accounts and automatically copying trades between them to multiply profits. Nearly all firms explicitly prohibit this practice.\n\nFirms detect copy trading through trade correlation analysis. If two or more accounts consistently enter and exit the same positions within seconds, they are flagged for investigation. Some firms also check if accounts share the same IP address or device fingerprint.\n\nThe prohibition exists because firms assume risk per individual trader. If one person runs 10 identical funded accounts, the firm's risk exposure is 10x what they anticipated. Violations typically result in immediate termination of all accounts and forfeiture of profits. Some firms allow copy trading from a personal account to one funded account, but this varies.","exampleWithNumbers":"A trader passes 5 separate $100K FTMO evaluations (total cost: EUR 2,700). They set up a trade copier to mirror trades across all 5 accounts. They make $5,000 on each account ($25,000 total). FTMO detects identical trade patterns, terminates all 5 accounts, and forfeits the $25,000. The trader loses the $2,700 in fees and all profits.","category":"trading","relatedTerms":["ea-trading","funded-account","prop-firm","max-contracts"]},"_links":{"self":"https://runvigil.app/api/glossary/copy-trading","page":"https://runvigil.app/learn/copy-trading","allTerms":"https://runvigil.app/api/glossary","learn":"https://runvigil.app/learn"}}