Investing glossary

The percentage of a portfolio assigned to a specific asset, sector, or investor. For example, '30% in tech stocks' is an allocation decision.

A unique credential that lets one application (like CopeNvest) read data from another (like eToro). CopeNvest only requests read-only access, meaning it can view your portfolio but never trade or move funds.

A plain-English summary generated by CopeNvest's AI that explains the key risks, stats, and portfolio composition of a copied investor. It translates numbers like max drawdown and risk score into language anyone can understand.

A measure of how much an asset moves relative to a benchmark (usually the market). A beta of 1 means it moves with the market; above 1 means more volatile; below 1 means less volatile.

A form of investing where you automatically replicate the trades of another investor in real time. When they open or close a position, the same happens proportionally in your account.

The number of people currently copying a given investor on eToro. A high copier count can indicate popularity, but it's not a measure of quality. Always check the risk score and drawdown too.

A measure of how closely two assets move together. High correlation means they tend to rise and fall together, which reduces the benefit of diversification.

Spreading investments across different assets, sectors, or geographies to reduce the impact of any single loss. The goal is that not everything falls at the same time.

A payment made by a company to its shareholders, usually from profits. Dividends are typically paid quarterly and represent a share of the company's earnings.

Discounted Cash Flow analysis. A valuation method that estimates the present value of an investment based on its expected future cash flows. CopeNvest uses DCF to help assess whether a stock in your portfolio appears over or under-valued.

Exchange-Traded Fund. A basket of assets (like stocks) that trades on an exchange like a single stock. ETFs are a common way to get diversified exposure to a market or sector cheaply.

Similar to copy trading, but typically refers to copying entire trading strategies or algorithms rather than individual investors. The terms are often used interchangeably.

The largest peak-to-trough drop in an investor's value over a given period. For example, a 40% max drawdown means the portfolio fell 40% from its highest point before recovering. This is one of the most important risk metrics to check.

An investment that has been opened but not yet closed. You have unrealised profit or loss on an open position until you sell.

An eToro programme that rewards high-performing, high-copier investors with a share of their assets under management. Popular Investors have extra incentives to perform consistently.

The full collection of investments held by a person or fund. A portfolio might include stocks, ETFs, crypto, and cash positions across one or more accounts.

A single open investment in an asset. Being 'long' on Apple means you hold Apple stock expecting its price to rise. Being 'short' means you profit if it falls.

A 1–10 score reflecting the volatility of an investor's portfolio on eToro. A score of 1 is very low risk; 10 is very high. It is calculated weekly based on the last 7 days of activity.

A permission level that allows an application to view data but not make any changes. CopeNvest always uses read-only eToro API keys, so it can never place trades or move money on your behalf.

A broader category that includes copy trading, discussion feeds, and investor transparency features. eToro is one of the most well-known social trading platforms.

A measure of risk-adjusted return. It tells you how much return you're getting per unit of risk. A higher Sharpe ratio means better return for the amount of volatility taken on.

An instruction to automatically close a position if its value falls by a set percentage. Used to cap potential losses on a trade.

Profit or loss on an open position that has not yet been sold. It fluctuates with the market price and only becomes 'real' when you close the trade.

How much and how quickly the price of an asset or portfolio moves up and down. High volatility means large swings: potentially large gains but also large losses.

The percentage of closed trades that ended in profit. A 60% win ratio means 6 out of 10 trades were profitable. A high win ratio doesn't guarantee overall profitability; the size of wins vs. losses matters too.