Copy by position is one of the first Copy Trading methods initiated by BingX. Copiers can copy trades by imitating a trader's position. Due to various objective and human factors, the platform cannot guarantee that the copied position will be exactly the same as that of the trader, nor can it guarantee that the executed price when Copy Trading will be exactly the same as that of the trader. Nonetheless, we will continue to optimize the performance of our system to optimally align positions as closely as possible.
Please carefully read the following risk statement before using the copy-by-position service (traders and copiers):
1. Scenarios Causing Inconsistent Positions
- The trader trades a trading pair that cannot be copied, and the position has unrealized P&L.
- There are deposits and withdrawals in the trader's copy trading account.
- Traders increase or decrease the position's margin.
- Copiers increase or reduce Copy Trading funds.
- Copiers turn off "Copy trader's positions immediately" while copying trades.
- The 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.
- The rule for position limits can be viewed here: Copy by Position - Copy Trading Group Position Limits
- The trading signal sent by the upstream/external exchange on which the trader trades was lost or delayed.
2. Scenarios Causing Inconsistent Executed Prices
Since the Copy Trading order is placed after receiving the trading signal from the trader, the time of placing the Copy Trading order will be later than that of the trader. After the trader executes a trade and when the copiers' orders are placed, if the market happens to fluctuate violently, there will be a difference between the filled price of the trader's order and the copiers' orders. Copiers' filled price may or may not be more favorable than the trader's price depending on the market's direction.
Traders conduct high-frequency trading (Grid strategy or DCA strategy, etc.) where multiple trades are executed instantly. Copy trading only allows copying one order at a time, which means it takes longer to complete all the trades and will be more exposed to market changes.
The copy trading group's position value is too large or the trader's position is too large. As Copy Trading is executed at market price, when the order position is too large, it can lead to slippage in the filled price of copiers' orders owing to a lack of depth in the trading pair.
3. Risk of Outage of the Upstream Exchange Service
In CopyTrading Pro where traders share their trades executed on an external platform (upstream exchange), copiers' orders also need to be placed on the external platform. When the trading service of the upstream exchange is unavailable, copiers' orders will fail to be placed and executed until the service is restored.In case of such outage, there may be a price and position difference between the trader and copiers.
4. Copy Trading Forced Liquidation Rules
In order to prevent users' equity from going negative, the "copy by position" system has an independent set of rules for forced liquidation. Even if the trader's position is not forcibly liquidated due to factors such as instantaneous market fluctuations, if the Copy Trading account triggers forced liquidation, it will be liquidated.
The maintenance margin rate is 0.5%; if the Copy Trading account's margin rate is ≤0.5%, it will trigger forced liquidation.
Copy Trading account margin rate = (position margin + unrealized PnL) / Net asset value of Copy Trading account