Forex glossary
Social trading
Social trading is a model where investors watch, discuss and mirror other traders' decisions on a shared platform. Its best-known form is copy trading — automatically replicating a chosen trader's positions. Past performance does not guarantee future gains, and you bear the full risk of the copied trades.
Illustrative example
How does it work in practice?
On a hypothetical platform, two traders discuss buying EUR/USD, but you have not enabled copying. Reading profiles and comments does not open a position; a separate order or copying feature requires its own settings.
A case to work through
Balance with an open loss
Profile model: balance 10,500 USD from an initial 10,000; floating P/L −900 USD, no deposits or withdrawals.
- Equity is 9,600 USD.
- A 500 USD balance increase does not mean current capital increased.
What follows? Compare profiles using the same measure and cost scope.
Example boundary: This is an account model, not an assessment of an actual provider or future performance.
A useful distinction
Social trading / Copy trading
Copy trading automates instructions; social trading may involve only observation and discussion.
Check your understanding
Check open P/L and cash flows before comparing profiles.
Show the answer and explanation
Open-position P/L
Balance excludes that equity component.
Accounts, copying and programs
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Read the fuller explanation
Related terms
Sources and documentation
- FCA: copy-trading models
Copying-model distinctions and the relevant scope of UK regulation.
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.