Copy trading (Social trading)
Social trading is the best account type for launching a retail investment product in brokerage company.
Investor can copy trades from several signal providers simultaneously.
Investor can subscribe and unsubscribe from signal provider without help of broker.
Subscription and Unsubscription can be made within seconds by investor without approval of trader.
Investor can make his own trades on investment account.
Deposits / Withdrawals are immediate on investment and master accounts.
Investor can partially / fully close positions of money managers.
Allocation of positions in Social trading
Investment account and master account are separate accounts.
Trades that are opened on investment account don’t affect master account.
In social trading only Proportionally By Equity x Ratio allocation method is available.
Risk Ratio is equal to 1 by default and can be changed in the account subscriptions in the web.
Formula for calculation of investor’s position size for social trading
Position of investor = Master position x (Investor’s Equity / Master’s Equity) x Risk Ratio
Example for calculation
All masters have 1000$ on their accounts and investor has 2000$.
When master #1 opens
0.5 lot EURUSD, 2 lots are opened on investment account because he has 2 times more moneyplus x2ratio multiplier (
0.5 lots x (2000USD/1000USD) x 2).
When master #2 opens 0.5 lot EURUSD then 1 lot is opened on investment account.
When Master #3 opens 0.5 lot EURUSD then only 0.5 lot is opened on investment account.