When you start copying another investor with our CopyTrader™ system, eToro implements an automatic reallocation of the assets. This means that your initial investment will proportionally mirror the copied investor's portfolio.
To calculate the size of each newly copied trade, we capture the percentage of the copied investor's portfolio value (asset holdings, unallocated cash, and the total unrealised value) based on the current market value. We then mirror the same proportion in your copy, relative to the amount you have allocated to the copy.
The percentage of equity invested in each asset (weighting) will be exactly the same in the copier’s and copied portfolios at any point.
For example, an investor splits their investments 50/50 between two assets. Market movements cause that split to become 60/40, and then someone copies them. The copier’s portfolio will reflect that 60/40 split.
Our system will recalculate the correct weightings of your investment in these instances:
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Market movements change the value of assets
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The copied investor deposits or withdraws funds
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You add more funds to, or remove funds from, your copy
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You resume a copy after pausing
The reallocation process may take up to 7 business days. For assets that require rebalancing, positions may be opened and closed automatically to achieve the correct weighting. As a result, some profits or losses may be realised within the copy. However, the overall value of the copied investment remains unaffected.
