In the copy trading model, hundreds or thousands of accounts mirror a single main account. If that master account is poorly managed, suffers severe losses, or goes offline, all copied accounts are impacted at the same time, and the concentrated risk is systemic.

Delay, spread, and slippage: copied orders face delays and higher execution costs (spread/slippage), which reduces profits and amplifies losses. In addition, server/broker differences and high-volatility moments make entry/exit prices even worse for those who copy.