Copy trading allows you to automatically replicate the trades of experienced investors in real-time. When you choose a trader to copy, every trade they make is executed in your account proportionally to your allocated investment. The platform handles all the execution automatically once you've selected traders and set your risk parameters.

The minimum investment varies by platform but typically ranges from $50 to $500. Some platforms allow you to start with as little as $50, while premium services might require higher minimums. You can allocate different amounts to multiple traders, with minimums per trader ranging from $1 to $200 depending on the platform.

Key risks include:

• Performance risk: Past performance doesn't guarantee future results
• Strategy mismatch: Traders may change strategies without notice
• Leverage risk: Copied trades may use high leverage
• Technical risk: Execution delays could impact results
• Dependency risk: Over-reliance on others' decisions

Always diversify across multiple traders and use risk management tools.

Consider these factors when selecting traders:

• Track record: Look for consistent performance over 12+ months
• Risk score: Prefer traders with moderate risk levels (4-7/10)
• Drawdown: Maximum drawdown should be below 20%
• Strategy: Understand their approach and asset focus
• Activity: Regular trading with moderate trade frequency
• Transparency: Clear explanations of their strategy

With regulated brokers, you can't lose more than your account balance. However, if you're copying traders who use leverage, losses can exceed your allocated amount for that trader but not your total account balance. For example, if you allocate $500 to a trader and they use 1:30 leverage, you could lose the entire $500 but not more. Risk management tools like stop-loss limits can help control potential losses.