How Are Copy Trading Positions Calculated?
- Trader's Order Cost Formula
Order Cost = Filled Quantity × Average Execution Price / Leverage + Trading Fees
- Copy Trader's Order Cost Formula
Copy Order Cost = Order Cost / (Trader's Available Balance Before Placing the Order + Funds Frozen for Open Positions) × Copy Trader's Available Balance
1. Fixed-Ratio Copy Trading Mode
Opening a Position: The copy trader's opening cost is proportional to the trader's actual opening cost for the same order. The calculation is based on the available balances of both the trader and the copy trader, including funds frozen for open positions.
Example:
Assume the trader has an available balance of 1,000 USDT before placing an order, and the actual opening cost of a trade is 500 USDT. If your available balance is 500 USDT, the system will place the copy order with an opening cost of approximately 250 USDT.
Note:
Due to market slippage and variations in trading fees, the execution price of a copy trade may not be exactly the same as the trader's execution price. As a result, the actual opening position size is usually slightly lower than the theoretically calculated amount.
Closing a Position: The copy trader's position will be closed proportionally based on the trader's position reduction ratio. The closing ratio will exactly match the trader's position reduction ratio.
Example: If the trader holds a 1 BTC position and closes 0.2 BTC (reducing the position by 20%), the system will automatically close 20% of the corresponding position in the copy trader's account.
2. Fixed-Amount Copy Trading Mode
Opening a Position: The system calculates the opening position size based on the margin amount you set for each order.
Example:
If you set the margin per order to 20 USDT and your total copy trading amount is 60 USDT, the system will calculate the position size using an opening margin of 20 USDT each time a copy trade is triggered.
If your available margin is less than 20 USDT for a subsequent copy trade, the system will attempt to place the order using the remaining available amount or the minimum order size. In some cases, the copy trade may fail.
Closing a Position: The Copy Trader's position will be closed proportionally based on the trader's position reduction ratio, following the same logic as the Fixed-Ratio Copy Trading Mode.
Example:
If the trader holds a 1 BTC position and closes 0.2 BTC, the system will automatically close 20% of the corresponding position in the Copy Trader's account.
3. General Restrictions
- If the calculated opening amount is lower than the minimum order size or value allowed for the contract, the system will open a position using the minimum order size. For more details, please refer to the Futures Trading Rules.
- If the opening amount exceeds the maximum position limit allowed under the selected leverage, the system will open a position based on the maximum permitted position amount. For more details, please refer to Leverage and Margin for USDT-Margined Futures.
- In Fixed-Amount Copy Trading Mode, the margin per order must be less than or equal to the total copy trading amount.
- When the position margin of a trading pair reaches the maximum position margin ratio you have set, the system will no longer follow additional position-increasing orders for that trading pair.
- Copy Trader Available Balance = Futures Available Balance − Estimated Profit Sharing (Estimated Profit Sharing refers to the frozen profit-sharing amount pending settlement.)
Risk Control Rules
1. Strategy Stop Loss (Account-Level, Optional)
- Copy Trading supports a customizable account-level strategy stop loss ratio, with a configurable range of 5%–95%. This setting is optional.
- Trigger Condition: The remaining copy trading margin balance in the account is less than or equal to: Net Deposit Amount × (1 − Stop Loss Ratio)
- Trigger Result: Once triggered, the system will automatically stop copying the trader and close all corresponding positions copied from that trader at market price.
2. Independent Take-Profit and Stop-Loss for Each Position (Optional)
During the copy trading process, you can go to the My Copy Trading page and set individual take-profit and stop-loss prices for each copied position.
When the take-profit or stop-loss conditions are triggered, the system will close the corresponding position at market price.
3. Ending Copy Trading
After manually stopping copy trading, existing positions that have already been opened through copy trading will not be closed automatically.
You must close these positions manually, or wait for the trader to close the position. The system will then reduce the corresponding position based on the copy trading rules.
4. Reverse Position Opening Rules
When a trader performs the action of closing an existing position first and then opening a new position in the opposite direction, the copy trading logic differs depending on the following scenarios:
Scenario 1:
Both the trader and the copy trader hold the corresponding position:
The system will only close the existing position in the copy trader's account. The trader's newly opened reverse position will not be copied.
Scenario 2:
The trader holds a position while the copy trader has no corresponding position:
After the trader closes the existing position and opens a new position in the opposite direction, the system will continue copying the new position normally.
Copy Trading Metrics and Definitions
| Metric | Definition |
|---|---|
| ROI (Return on Investment) | Cumulative ROI = Total Profit / max (Current Copy Trading Amount, Cumulative Net Deposit);Total Profit = Account Equity − Cumulative Net Deposit |
| Profit and Loss (PnL) | Cumulative PnL = Account Equity − Cumulative Net Deposit; Period PnL = Ending Account Equity − Beginning Account Equity − Net Deposits During the Period |
| Maximum Drawdown (MDD) | MDD = (Maximum ROI During the Period − ROI at the End of the Period) / (Maximum ROI During the Period + 1) |
| Win Rate | Number of profitable positions fully closed during the period / Total number of positions fully closed during the period × 100% |
| Assets Under Management (AUM) | AUM = Trader's Actual Investment Amount + Σ Copy Traders' Actual Investment Amount;Actual Investment Amount = min {max(Copy Trading Amount, Net Deposit), Account Equity} |
| Margin Balance | Wallet Balance + Unrealized PnL |
| Trading Duration | The period from the creation of the Trader's copy trading strategy to the present. |
| Net Profit (Copy Trader) | Net Profit = Realized PnL − Cumulative Profit Sharing |
Copy Trading Limits
| Type | Description |
|---|---|
| Supported Contracts | Copy Trading is only available for supported contract trading pairs. |
| Leverage | Maximum 10x |
| Profit Sharing Ratio | Default: 10% |
| Maximum Number of Copy Traders | 100 Copy Traders per Copy Trading Strategy |
| Trader's Initial Copy Trading Amount | Minimum: 500 USDT |
| Minimum Trader Order Cost | Configured by the platform. Each opening or position increase order placed by the Trader must be greater than or equal to this value. |
| Copy Trader's Copy Trading Amount | Fixed-Amount Mode: 10–1,000 USDT per order Fixed-Ratio Mode: 100–100,000 USDT |
| Maximum Active Copy Trading Strategies | Up to 20 |
| Trading Fees | Charged according to standard Futures trading fee rates, with no additional Copy Trading service fees. |
Copy Trade Failure Scenarios
- The Copy Trader's available margin is insufficient after deducting the frozen estimated profit-sharing amount, resulting in the inability to meet the minimum order size requirement.
- When the Trader opens a position using a limit order or a limit take-profit/stop-loss order, the order will not be copied if it is not fully filled.
- Market slippage exceeds the slippage tolerance set by the Copy Trader.
- When the Trader opens a reverse position while both the Trader and the Copy Trader hold the corresponding positions, the reverse position opening will not be copied.
- If the Trader already has an existing position when the Copy Trader starts copying (and the copy starting point requirements are not met), any position increases or reductions during the holding period will not be copied.
- When the position margin of a trading pair reaches the maximum position margin ratio limit, additional position increases for that trading pair will no longer be copied.
- The execution price exceeds the contract's matching protection range, causing the order matching to fail.
- Insufficient market liquidity (such as the lack of counterparties) prevents the position from being closed successfully.
- The opening amount is below the minimum order size/value and does not meet the requirements for opening a position.
Profit Sharing Rules
- The system calculates the Copy Trader's net profit and loss from contract fund flow settlements and calculates the pending profit sharing amount based on the profit-sharing ratio. The amount will be settled at the scheduled settlement time and transferred to the Trader's Spot Wallet.
- Pending Profit Sharing Amount = max (Realized Profit During the Period × Profit-Sharing Ratio, 0)
- If the Copy Trader holds open positions and the profit-sharing settlement would trigger liquidation, the settlement will be postponed to the next settlement period and combined with the profit and loss from the following period.
- The frozen estimated profit-sharing amount in the Copy Trader's available balance will be reset after settlement.
Settlement Schedule
| Item | Time |
|---|---|
| Settlement Time | Every Monday at 00:00 (UTC) |
| Profit Calculation Period | Monday 00:00:00 (UTC) to Sunday 23:59:59 (UTC) |
Disclaimer
This article is not intended to provide:
(i) investment advice or investment recommendations;
(ii) an offer or solicitation to buy, sell, or hold digital assets; or
(iii) financial, accounting, legal, or tax advice.
Digital assets you hold, including stablecoins and NFTs, involve significant risks and may experience substantial price volatility. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial circumstances.
For advice specific to your situation, please consult your legal, tax, or investment professionals. You are solely responsible for understanding and complying with all applicable local laws and regulations.