What are the main risks of copy trading?

Copy trading lets you automatically replicate other traders' positions, but carries significant risks. First, the trader you're copying may experience losses—past success doesn't guarantee future results. Second, you have no control over trade timing or size, potentially exposing you to unexpected large losses. Third, market conditions change rapidly; a strategy that worked yesterday may fail today. Fourth, there's liquidation risk if using leverage, meaning you could lose more than your initial investment. Finally, platform fees eat into profits, and some copied traders may lack proper risk management. Always research whom you copy, use stop-losses, and only risk capital you can afford to lose. Copy trading works best as part of a diversified strategy, not as a standalone approach.