A trading model that incorporates social networking features, allowing users to observe, discuss, and replicate the activity of other traders.
Social trading is the broader category that includes copy trading as a subset. Platforms such as eToro's social feed, Myfxbook's AutoTrade, and TradingView's published strategies allow traders to share their analysis, trade ideas, and open positions with a community - and, in most cases, to replicate those positions automatically.
Beyond simple copying, social trading platforms provide a community layer: followers can comment on a strategy, ask the signal provider questions, and review a detailed trade history including open and closed positions. This transparency is the distinguishing feature compared to traditional signal services, which often publish only summary statistics and cherry-picked results.
The network effect creates both value and risk. High-ranking traders on social platforms attract many followers, which can distort the market when the master opens a large position - many follower accounts simultaneously replicate the trade, moving price in the same direction. The master's quoted performance may also not fully reflect slippage experienced by followers who execute moments later or at slightly different prices.
For intermediate traders, social platforms can serve as an educational tool - studying the annotated charts and commentary of experienced traders - rather than purely as a copy mechanism. Developing an independent understanding of the strategies being followed reduces dependency and helps followers recognise when a master's approach no longer fits the current market environment.