Copytrader is a trading tool that enables investors to follow other traders and copy their trades by a single click. Many established traders who have used it term it as quite comprehensive.
How Does CopyTrader Operate?
With the Copytrader tool, traders have the opportunity to evaluate other trader’s rankings to rate the magnitude of their success. In the event they feel that a specific trader’s success is bound to remain constant in the future, they can click and place a minimum of 20% bets of their assets. For instance, if an investor places a $500 bet and their target trader opens a new window with 7.5% of their assets, the investor will be capable of betting $75 on the similar position.
With copytrader, traders can maximally follow ten prosperous traders. There are various aspects that traders and investors should note when it comes to this platform. One, copytrader refers to the successful trader an investor is copying, and a copier is the person executing the copying.
What to Remember Prior to Copying
- Investors cannot invest below $100 on traders. Similarly, investors cannot copy more that 100 traders at the same time.
- Copied trades can only open if they amount to a minimum of $1, and investors are limited to invest a maximum of $500,000 on a single trader.
- In the event an investor manually closes a copied trade, the non invested amount is credited on their copy balance.
The copytrader tool comes with a copying all trades option which allows copiers to replicate all open trades from a copied trader. While the copiers can access the copied trader’s open trades, there are certain terms to understand. They include;
- Trades will resemble the copied trader’s subsequent actions including the trade closing, take profit, and stop loss right from when the copier embarked on replicating them.
- In the event a copied trader adds extra funds to any specific window for the purpose of prolonging their stop loss, the copier’s stop loss is adjusted forthwith. Even then, their window remains as it initially was. Basically, this means that copiers may spot percentage differences between the copier trader and their own accounts.
- Investors do not have to close the entire copy account when they choose to close a certain copied trade.
- When a copied trader opens a new window that is probably closed at the time of copying, the technology will make this available to the copier by opening a market order. This, however, can only execute once the market opens.
- In the event a copier wants to view the comprehensive trades replicated from one trader, they can do so by clicking the copied trader’s name on their portfolio. It is important to note that the copier’s entire trades open simultaneously. They will however view them at some loss which is representative of the gap between sell and buy rates. This displays an actual time depiction of the funds they are likely to receive if they choose to terminate the trade.
Copiers who choose to use the copying only new trades methods will be restricted to copying new trades opened by the copied trader post the beginning of copy action. There are various terms that copiers should note which include;
- The copiers account will only display trades opened post beginning of the copy action.
- Trades have similar take profits and stop loss with the initial trades
- The copier’s new trades rate will be similar to the copied trader’s once they open
- Each copied trader’s actions are replicated on the copier’s account automatically. They come complete with the closing of trade, take profits, and stop losses. In the event a copied trader adds extra amount to a specific window to prolong their stop loss, the copier’s stop loss is adjusted automatically. Even then, the copier’s window amount remains as the original amount.
Various factors influence the relative amount. For instance, it may change if the copied trader alters their balance either through withdrawing, depositing, or closing an outdated trade which they probably opened before the copier started following and replicating them. This may bring about trades with varying relative amount.