Copy Trading: A Beginner's Guide to Avoiding Pitfalls

Tips for Beginners in Copy Trading

<1>Once you have followed a trader, you cannot refollow this trader or follow other traders while your copy 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> 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. This may lead to different yields between the follower and the trader.

Copy Trading FAQs

1. Why is the trader's PnL ratio different from that of the followers'?

- Differences in capital between a trader and a follower can lead to different PnL ratios. 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 taken up by the trader's existing positions and orders, this follower will then be unable to copy the trader's subsequent orders.

- 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.

- The trader has already held a position on a certain contract before being followed by a follower. Subsequently, the trader adds to the position after being followed. As a result, the trader and the follower will have different entry prices, leading to different PnL upon closing the position.

- A follower has set leverage for copy trading, resulting in different PnL between the follower and the trader after their positions are closed.

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.

3. How is the follower's cumulative PnL calculated? Why is it different from the sum of PnL of all copy trades?

A follower's Copy Trading PnL = Sum of Cumulative PnL - trading fees deducted for current positions - profits shared with the trader

Cumulative PnL is the sum of profits a follower has earned from all copy trades.

Please note that the unrealized PnL shown on the Follower' page is not counted towards the cumulative PnL.