When an investor copies trades made by a strategy provider, the trades are copied onto an investor's investment, which incorporates a copy ratio calculation.
The copy ratio (or copy coefficient) is the ratio between the investment equity and the equity of the strategy provider within the strategy. It is used to multiply the lots assigned to orders while copying the orders.
The copy ratio is designed to address how orders are copied onto the investment accounts when opening investments. The calculation is modified based on whether the strategy has active open orders at the moment the copying starts.
Note: Copy ratio or copy coefficient never increases after the start of investment regardless of any withdrawals on the strategy account.
Calculation formula
Whenever an investment is created for a strategy, the system calculates the copy ratio accordingly.
The copy coefficient is also 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.
Copy ratio (K) = investor’s equity investment / (strategy provider’s equity strategy + sum (open orders spread cost))
Open orders spread cost - strategy orders spread the cost at the moment of the copy action. Current market prices are logged immediately upon initiation of the copy action.
When the strategy has no open orders, the open orders spread cost will be set as 0.
Copy ratio recalculation
When a strategy provider deposits into the strategy account:
- All orders connected to investment accounts will be closed at the current market price.
- The copy coefficient will be decreased as the strategy’s equity has increased by the deposit made.
- Orders are opened with the close price and zero spread on the investment accounts with a recalculated copying coefficient.
At the end of the trading period:
- Orders are automatically closed and reopened with a new copying coefficient, or in some cases, with the same copying coefficient, as the investment equity has decreased by the commission withdrawal.
Important: In scenarios when a copy ratio is recalculated, the maximum copy ratio is set at 14.
We've made the copy ratio precise and clear to ensure that when investors make a profit, they can rest assured knowing their earnings are accurately and fairly distributed according to their investment.
Read more about how copying works to view the various scenarios where the copy ratio is applied.