# What is Copy trading policy?

> A copy trading policy sets whether a trader may copy trades between their own accounts, from others, or from signal services, and what limits apply.

- Source: https://pipvalley.com/glossary/copy-trading-policy
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-03

In a prop firm, copy trading covers three different things: copying between a trader's own accounts at the same firm, copying from accounts at other firms or brokers, and copying signals or trades from someone else. Firms treat each differently.

Copying between a trader's own accounts is often allowed up to the firm's maximum allocation. Copying someone else's trades is often banned or restricted, because many traders running identical positions concentrate risk on a single strategy and can amount to group trading.

The policy should also state whether the firm tolerates trade copiers installed on its platform and how it treats identical trades across accounts owned by different people.

## Why it matters

Copied trades make liability correlated: if one strategy wins, many accounts request payouts at once. Your copy trading policy, risk engine and maximum allocation have to agree. Publish the policy in plain language, with examples, so that a denied payout points back to a rule the trader could have read.