Special Copy Trading Notes -Traders
Updated at:89 days 22 hours ago
1.Notes for copy trading - traders
Note1: The Lead Trader needs to acknowledge that the copier will copy the position change of the lead trader without considering the copy multiple, leverage system and single transaction constraints until the copier's copy funds are no longer available.
2. Detailed description for Note 1
Currently, the Gate.io copy amount is based entirely on the trader's position. For example, the copier's copy amount is 100 USDT in total. When following trader A, the trader invests 90 USDT in a future, then the copier will follow 90 USDT, then, the trader immediately invests 100 USDT in another future, but the copier only has the copy amount of 10 USDT left, then the copier will put the remaining 10 USDT all in. If the trader continues to invest 100 USDT next, then the copier will not continue to copy because his copying funds are not allowed. This will lead to inconsistent income between the copier and the trader.
It is suggested that the trader should pay attention to the fund situation of the copier when lead trading.
When considering copy multiples, leverage, regardless of transaction fees and funding rates:
If the lead trader has a total of 1000U of funds, of which 100U is used to buy A currency future, with a leverage of 100 times. Then the value of the constructed position is 100*100=10000U；
The total number of copy funds for the copy user is 100U, with the copy multiplier set to 0.1, and the leverage set to 20 times. Theoretically, the copy position of the copier following the above transactions is 10000 * 0.1 = 1000U in total. The copier needs to invest a margin of 1000/20=50U to copy, then the remaining available funds of the copier are 100-50=50U;
Subsequently, the lead trader used 200U to buy the B currency future, with a leverage of 100 times. Then the value of the position is 200 * 100 = 20000U;
At present, the copier has a remaining available fund of 50U, with a leverage of 20 times and the maximum position value that can be built of1000U. If the copier want to continue to follow the lead trader to buy B future, the copier can only build a position of 1000U. So far, the copy funds are all used up.
At this time, when the price of both A and B coins has risen by 10%, and the trader closes the with position,
Earnings of the trader: (11000-10000) + (22000-20000) = 3000U;
Earnings of the copier: (1100-1000) + (1100-1000) = 200U