Overview:
1. What Is Copy by Fixed Margin?
2. What Is Copy by Position Ratio?
3. What Is Copy by Spot Grid?
4. Comparison of the Four Types of Copy Trading
Dear User,
In order to meet the needs of our users, BingX has launched the following four types of Copy Trading services: Standard Futures Copy Trading, Perpetual Futures Copy Trading, Binance Futures Copy Trading, and Spot Grid Copy Trading. Among them, Standard Futures Copy Trading is under "copy by fixed margin" mode, Binance Futures Copy Trading is under "copy by position ratio" mode, while Perpetual Futures Copy Trading is under both "copy by fixed margin" and "copy by position ratio" modes.
1. What Is Copy by Fixed Margin?
BingX Standard Futures Copy Trading and Perpetual Futures Copy Trading are under the "copy by fixed margin" mode. "Copy by fixed margin" means that whenever a copier copies a trader, the amount of margin that is being used each time the copier opens a position will be a fixed amount set by the copier. In this copy trading mode, copiers can only copy the signals of trades opened in the isolated margin mode. Traders can still open a position in the cross margin mode as usual but copiers cannot copy the signals of this type of position.
Advantages: The margin is fixed, so it is easier to understand and control the risks. Also, this type of copy trading mode allows copiers to perform autonomous trading to some extent.
E.g., If the copier sets 10 USDT as the margin for a single copied trade and the trader opens long BTC/USDT, the system will open long BTC/USDT for the copier with a 10 USDT margin regardless of the margin/position ratio of the trader. And the trade will be displayed in the Position of the copier’s USDT-M Standard Futures account.
2. What Is Copy by Position Ratio?
BingX Perpetual Futures Copy Trading and Binance Futures Copy Trading both allow users to copy traders by position ratio. "Copy by position ratio" means that whenever a copier copies a trader, the ratio of the order margin to the copier's copy trading funds is the same as the position ratio of the trader. The margin for each copied order is calculated based on the ratio of the trader’s margin to net account assets (of USDT Account). Not only does this copy trading mode allows copiers to copy trading signals, but also the trader's real position ratio. Copiers can achieve an ROI approximate to that of the trader's account.
Advantages: The positions of the copier and trader are close to the same, which means that the risks of both positions are similar. This mechanism keeps the risks of positions under "copy by position ratio" mode at a relatively lower level. In the long run, traders can better help copiers in risk control and profit management.
E.g., if the trader's copy trading account has net assets of 1,000 USDT and uses 30% of the fund, i.e., 300 USDT, with leverage of 5X to open long BTC/USDT, the copiers will also use 30% of their copy trading funds (suppose 100 USDT), that is, 30 USDT with 5X leverage to open long BTC/USDT.
3. What Is Copy by Spot Grid?
"Copy by spot grid" means that copiers will copy the grid parameters of the trader’s strategy for spot market arbitrage. "Copy by spot grid" allows copiers to cancel the spot grid trading strategy at their own discretion.
Advantages: "Copy by spot grid" supports copying the grid strategy set by professional traders, thus achieving 24/7 automated arbitrage and eliminating the need for traders to keep an eye on the market.
E.g., if the copier invests 1,000 USDT in "copy by spot grid", it will copy the grid parameters of the trader's strategy and subsequently create a spot grid order which will be displayed in the order history of Grid Trading in the Spot Trading section.
4. Comparison of the Four Types of Copy Trading
The four types of Copy Trading differ in terms of trading, margin investment and other aspects, as detailed in the following table:
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Overview of the Four Types of Copy Trading
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Types of Copy Trading
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Standard Futures Copy Trading
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Perpetual Futures Copy Trading
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Binance Futures Copy Trading
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Spot Grid Copy Trading
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Margin Account
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Standard Futures account
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Any account
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Any account
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Any account
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Margin investment
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Per order
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One-off
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One-off
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One-off
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Copy Trading mode
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Copy by fixed margin
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Copy by position ratio
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Copy by position ratio
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Copy by spot grid
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Margin/trading mode
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Isolated margin mode/market price
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Cross margin mode/market price
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Cross margin mode/market price
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Spot/limit price
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VST Copy Trading
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Available
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Unavailable yet
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Unavailable yet
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Unavailable yet
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Copy Trading Subsidy Voucher
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Available
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Available
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Available
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Available
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Recommend to Earn
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Available
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Available
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Available
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Unavailable yet
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Copy Trading Fee
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0 Copy Trading fee. Copiers only need to share part of their profits with the traders.
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Contact Us
BingX exclusive support for Copy Trading: trader.support@bingx.com
BingX exclusive trader support on Telegram: @BingXRyan
BingX Operation Team
2023-03-01
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