When an investor follows a Strategy Manager, any trade opened by the Strategy Manager is automatically copied by the investor at the same time and price.
The size of the investor’s position is based on the following ratio:
Example 1
For example, if an investor deposits $1,000 in their Invest Account and the Strategy Manager’s equity is $1,000, then the ratio is calculated as follows:
Ratio of equity = Equity of investor/equity of manager
Rate of equity = 1,000 / 1,000
Rate of equity = 1
This means that when the Strategy Manager opens a position of 1 lot, the investor’s position is opened at 1 lot at the same time. After some time, the Strategy Manager's equity grows to $1,500 (as does the investors), but the investor decides to withdraw $300. The new ratio is calculated as follows:
Example 2
Ratio of equity = Equity of investor/equity of manager
Rate of equity = 1,200 / 1,500
Rate of equity = 0.8
If the Strategy Manager then decides to open a position of 2 lots, for example, the investor’s position is opened at 0.8 x 2 = 1.6 lots.
In the case where the investor activates their account while the Strategy Manager already has an open position, the investor will have a position opened at the current market price.
What is the maximum ratio allowed for copy trading?
The maximum ratio of equity between a strategy manager and investor is 1:100 because the minimum trading volume allowed on an Invest Account is 0.0001 lot.
If the ratio of equity exceeds 1:100 as the Strategy Manager increases funds on their account, the Invest Account will be paused and the investor will be notified by email of the additional deposit amount needed to continue copy trading the Strategy Manager.
What is the minimum deposit for an Investment account?
The minimum deposit for an investment account depends on the strategy manager's equity. The minimum amount required is $100, but this amount can be higher based on the strategy manager's equity. This means that while $100 is the base minimum, different strategy managers may set higher minimums depending on their specific investment strategies and the amount of capital they manage. Always check with the strategy manager for their specific requirements.