Risk Warning for Copytrading

Followers can copy trades by imitating a pro trader's orders. Due to various objective and human factors, the platform cannot guarantee that the copied position will be exactly the same as that of the pro trader, nor can it guarantee that the executed price when Copy Trading will be exactly the same as that of the pro trader.

1. Analyzing Factors Leading to Position Discrepancies

• The pro trader trades a trading pair that cannot be copied, and the position has unrealized P&L.
• There are deposits and withdrawals in the pro trader's copy trading account.
• Pro traders increase or decrease the position's margin.
• Followers increase or reduce Copy Trading funds.
• The pro trader's position is too large or the total position value of the copy trading group is too large, which triggers the maximum position limit for the copy trading group. While the position limit is triggered, the system will automatically open new positions if a follower increases their copy trading funds after being liquidated.
• Due to differences in margin modes between followers and pro traders, as well as market fluctuations, followers might encounter situations where their funds may be insufficient to copy the pro trader's opening ratio and thus fail to copy an open order or fully copy the order. Closing positions are not affected. 

Tips: If the pro trader adjusts the leverage, but the follower does not have enough asset, then follower  will not follow the pro trader to adjust the leverage

2. Analyzing Factors Leading to Inconsistent Execution Prices

In Copy Trading, orders are executed after receiving signals from the pro trader, which means there is often a delay between the pro trader’s execution and the placement of followers' orders. If the market experiences significant fluctuations during this delay, there can be a discrepancy between the filled prices of the pro trader’s orders and the followers' orders. Depending on market direction, the followers' filled prices may be more or less favorable than those of the pro trader.

Pro traders employing high-frequency strategies often execute multiple trades in quick succession. However, Copy Trading only allows for one order to be copied at a time, resulting in a longer completion time for all trades and greater exposure to market volatility.

Additionally, when the position size of the Copy Trading group or the pro trader is too large, it may lead to slippage, as orders executed at market price can struggle with a lack of depth in the trading pair.