A deposit into a strategy will adjust its equity amount, and affect the strategy in a few key ways:
- Increase the maximum amount that can be invested in the strategy for future investments. However, the overall total equity limit of a strategy and all investments in it is USD 200 000.
- Activate an inactive strategy if a Strategy Provider (SP) fulfills the minimum requirements to trade, after the deposit.
- Affect the copy ratio (copy coefficient) for current investments - it is automatically recalculated as a ratio of the investment equity to the strategy equity. During this process open orders are closed and immediately reopened at zero spread with a newly calculated copy ratio to make this calculation as accurate as possible (these orders are marked as “Autoclosed” in the Copied Orders area of the Social Trading app).
- Copy ratio or copy coefficient never increases after the start of investment regardless of any deposits/withdrawals on the strategy account. However, it may be affected by the end of the trading period as the commission is paid to the strategy provider. This makes the Investor's equity lower, and the copy coefficient may decrease.
- Commission calculations are not impacted by deposits, as only the equity of investments is used to calculate the commission and not the strategy’s equity.