Guide to Copy Trading for Followers

1. How to become a follower

a. Go to the "Copy Trading" page (Log in HTX website >> Click "Derivatives" in the upper navigation bar >> Select "Copy Trading"). b. Select a trader and click "Follow". c. Complete the copy trading settings and tick "I have read and agree to the Copy Trading User Agreement". d. Click "Follow" to confirm the copy-trading.

Note 1: Followers should read and accept the Copy Trading User Agreement.

Note 2: A follower can temporarily follow only one trader at a time.


2. Futures copy trading

2.1 How copy trading works for a follower

<1> With copy trading, a follower copies the trader's position changes. The copy trading amount (rounded down) = Copy units ratio * Position changes. If the amount is lower than the minimum allowable amount for copy trading, then the orders will not be copied.

<2> The follower's tradeable amount will then be calculated based on the follower's available fund and futures leverage. If the copy trading amount is ≤ the follower's tradeable amount, the copied trade will be made; or else the copied trade will fail.

<3> The follower copies all of the trader's positions until the funds are used up, regardless of the copy units, leverage, and position limit for a single order. When the trader reduces the position of a copy-trading contract, the follower will have their position reduced too and thus have more available funds.


2.2 Applicable futures products

HTX currently supports 30 USDT-margined futures trading pairs like BTC/ETH/DOGE/ARB/OP/LTC/LINK for Copy Trading. The specific pairs are subject to changes based on user feedback.

3. Copy trading specification

Profit Sharing Ratio: The portion of profits followers share with their lead trader. This parameter is set by the trader and cannot be changed by followers.

Leverage: The leverage for copy trading is set by the trader and copied by followers in their copied trades. The leverage can be adjusted later by followers.


4. How to unfollow a trader

Go to Copy Trading >> My Copy Trading, and click the button "Unfollow". This action will end the current copy-trading relationship, and cause the current copy-trading positions to be closed at the market price and settled as per the profit-sharing ratio.


5. Profit sharing

After a follower's copy-trading positions are closed, a portion of the net profits to be shared with the trader, determined by the profit sharing ratio, will be temporarily frozen. These frozen profits will be held until a unified settlement occurs before 02:00 (UTC) the following day, at which point profit distribution will take place. Net profits = Total profits - Total losses.

If a follower stops copy trading, the profit-sharing settlement will take place immediately. Any remaining funds after the settlement will be returned to the follower's Futures account, and the trader's profit share will be distributed by 02:00 (UTC) the following day.

Profit Sharing Ratio: Set by the trader; parameter modification is currently not supported when the Trader Mode is enabled.

Profit shared with the trader = ∑ (PnL amount from a copy-trading contract) * profit sharing ratio. If the shared profit is > 0, it will be credited to the trader instantly. If the shared profit is ≤ 0, the trader won't receive any profit, and the previously frozen profit will be returned to the follower's Futures account.


6. How to view your profits

Followers can check the profit details of every copied trade via the HTX app >> Futures >> a record icon in the lower right corner >> Capital Flow.


7. Important notes

<1> Once you have followed a trader, you cannot refollow this trader or follow other traders while your copied trades are being executed. You can follow the same trader after your current copy trading relationship has ended. Change of parameters in the middle of copy trading is not supported at the moment.

<2> A fully-followed trader has no vacancy and is therefore unavailable to be followed.

<3> If you have been approved as a trader, you cannot follow other traders.

<4>Followers copy all of a trader's positions until their funds are used up, regardless of the copy units, leverage, and position limit for a single order. This may lead to different yields between followers and their trader.


8. FAQs

8.1 Why is the trader's PnL% different from that of the followers'?

<1> The differences in principal size between a trader and their followers can lead to varying returns. When a follower runs out of available funds, they will be unable to copy the trader's subsequent orders.

In a copy-trading relationship, a follower copies any orders placed by the trader until the follower's funds are used up. If a follower's funds have been fully taken up by copying the trader's existing positions and orders, this follower will then be unable to copy the trader's subsequent orders.

<2> When a trader holds both long and short positions of the same contract (Hedge mode), the follower's position only synchronizes the trader's net position changes instead of copying all orders made under the long and short positions.

<3> If a trader already holds a position of a symbol and is then followed by a follower, when the trader adds to the position, the trader and the follower will have different entry prices and therefore different profits.

<4>If a follower sets leverage for copy trading, yields between the follower and the trader will vary after their positions are closed.


8.2 What can a follower do to minimize the difference in PnL with their trader?

It is advisable for a follower to match the investment size as closely as possible to that of their trader to minimize the differences in PnL resulting from variations in fund size.


8.3 How is the follower's cumulative PnL calculated? Why is it different from the sum of PnL of all copied trades?

A follower's Copy Trading PnL = Cumulative PnL - Trading fees deducted for current positions - Profits shared with the trader.

Please note that the unrealized PnL shown on the copy trading page is not counted towards the cumulative PnL.