In Social Trading, copying is a process through which a strategy provider’s trades are copied to the investor’s account, after factoring in a copying coefficient.

Note: The copy coefficient is recalculated at the end of the trading period and when the trader deposits into the strategy account. In both cases, investment orders will be closed at current prices and re-opened with a new volume corresponding to the recalculated copy coefficient. Read more on how is the copy ratio for a strategy calculated.

Copying scenarios

Let us look at a few scenarios an investor may encounter:

1. Start copying without open trades:

A strategy has started and does not have any open trades at that point in time. Once it starts, the system calculates a copying coefficient. When the strategy provider opens a trade, the trade is immediately copied to the investment account at the same opening price.

2. Start copying with open trades:

A strategy has started and has a few open trades at this point in time. Once it begins, the system calculates a copying coefficient. In this case, the copying coefficient is calculated differently because it also includes the spread cost of the strategy provider’s open trades.

Trades already open are copied to the investment account.

• • If the market is open, orders will be copied with the current market price which may be different from the opening price of the trades on the strategy provider’s side.
  • If the market is closed, and there are more than 3 hours until the market re-opening for the instruments on which there are existing open trades, orders will be copied onto the investment using the last market price.
  • If there are less than 3 hours to market re-opening for the instruments on which there are existing open trades, the Investor will not be able to start copying. Copying will be available once the market is open.

3. Stop copying with no open trades:

If an investor chooses to stop copying a strategy with no current orders on a strategy, the investment will be closed. The system calculates the commission and transfers funds from the investment balance to the investor’s wallet. The commission calculated will be sent to the strategy provider at the end of the trading period.

4. Stop copying with open trades:

If an investor chooses to stop copying a strategy while there are still open trades, the orders on the investment account will be closed with the current market price as the closing price. The system then calculates the commission and transfers the funds from the investment balance to the investor’s wallet. The commission calculated will be sent to the strategy provider at the end of the trading period.

5. Subsequent copying after opening an investment

When the strategy provider opens new trades, they will be immediately copied to the investment account using the same opening price as that of the strategy provider. This also applies when the strategy provider closes an order, the order will also be closed on the investment account with the same closing price. The copying coefficient used for calculation is the actual copying coefficient, calculated and updated according to the copy ratio formula.

Example

Let’s take a look at an example to illustrate how copying and copy ratio (copying coefficient) works:

A strategy provider has USD 500 in a trading account.

• • Investor 1 invests USD 1000
  • Investor 2 invests USD 1500

Copy ratio (K) = equity investment / (equity strategy + sum (open_orders_spread_cost))

If the SP opens an order of 2 lots, let us calculate how it will be copied to each investment:

Important: In scenarios when a copy ratio is recalculated, the maximum copy ratio is set at 14.