question about copytrading?

[gre123]

hey everyone, i just came across the website mql5.com and on the signals tab you can copy trade members but for example i have a 100 dollars and the member im copy trading trades with a 10000 dollars, how would that trade get copied in my account, i mean how does it usually affect margin? does anyone know ??

[joniboini]

Usually, they'll use a percentage to count your trade. Let's say the trader that you copy uses a total of 10% from all of his money (that 10k dollars), the same amount of money will be used on your account to do the same trade (so, around $10).

I doubt the copy trading platform allows such a small amount of trade though, most of the time they'll ask you to deposit a $1k at minimum, so there will be better liquidity on your account just in case the trade requires a wide stop-loss.

[adaseb]

I would advise against using any of those to trade your hard earned income. The reason is because even though they seem profitable and made money in the past, almost all of those signals have a huge drawdown at one point.

Usually what can happen is your account can easily be down by 90% at one point, then the market reverses back to your entry and you might end up with 5% profit. They take trades which have a small reward and a huge risk.

Eventually the account will reach 99% and you will be liqidated, sometimes even earlier due to spread and maintaince margin requirements. So just keep that in mind. They usually work well for a short period but eventually it will end up blowing up your account. So if you try it, do it with a small amount first and see what happens.

[beerlover]

hey everyone, i just came across the website mql5.com and on the signals tab you can copy trade members but for example i have a 100 dollars and the member im copy trading trades with a 10000 dollars, how would that trade get copied in my account, i mean how does it usually affect margin? does anyone know ??

Copy trading is all about copying the signal (where to buy or exit) and your capital while copy-trading has nothing to do with. It means you must have pre-set on volume and trading pair on which you are going to copy-trade and when the trader (whom, you are following) opens a trade on the particular trading pair then it will trigger a open order in your account for the volume you have set.

Every platform has different set up things for these copy-trading functionalities, you must take time to get familiar with them before activating the same. But, definitely you do not worry about having same level of capital to copy. Moreover, copy-trading will kill your trading skills over the time. Generating your own signals for trading will make you a pro trader one day. Think about that .

[chip1994]

hey everyone, i just came across the website mql5.com and on the signals tab you can copy trade members but for example i have a 100 dollars and the member im copy trading trades with a 10000 dollars, how would that trade get copied in my account, i mean how does it usually affect margin? does anyone know ??

The copy trading system will open the order for you according to the percentage of the account you are copying. For example, if the person you copy trading has $ 10,000 and they enter the order with the amount of $ 1,000, then that means you will open the order with $ 10 of your total $ 100. That is a percentage copy.

[avikz]

hey everyone, i just came across the website mql5.com and on the signals tab you can copy trade members but for example i have a 100 dollars and the member im copy trading trades with a 10000 dollars, how would that trade get copied in my account, i mean how does it usually affect margin? does anyone know ??

I believe the picture below will be able to answer your doubts about copy trading. This is my own account with InstaForex.



Hope this helps!

[milandres0207]

hey everyone, i just came across the website mql5.com and on the signals tab you can copy trade members but for example i have a 100 dollars and the member im copy trading trades with a 10000 dollars, how would that trade get copied in my account, i mean how does it usually affect margin? does anyone know ??

I don't trust that copy trading actually, it is a matter of money talk only. In short, they will demand you for a deposit which is too risky
especially if you're not familiar with it, instead of this thing much better to make your own way to do the actual trading by your
own strategy.

[coinfinger]

hey everyone, i just came across the website mql5.com and on the signals tab you can copy trade members but for example i have a 100 dollars and the member im copy trading trades with a 10000 dollars, how would that trade get copied in my account, i mean how does it usually affect margin? does anyone know ??

I don't trust that copy trading actually, it is a matter of money talk only. In short, they will demand you for a deposit which is too risky
especially if you're not familiar with it, instead of this thing much better to make your own way to do the actual trading by your
own strategy.

Could you please take time to elaborate on what are the risks we may need to face when we are not familiar with copy trading. In my understanding, when we are not familiar with copy trading, it would be much better to go for copy trading instead of making our own trading strategy/trading signals. But, here you are saying something completely different from my basic understanding about copy trading. Definitely will be very big help to me if you explain a little bit more on copy trading.

After seeing lots of discussions and positive approach about copy trading from this community, I am slowly convincing myself to go for it because it will save my time and it may get me good returns for my capital in crypto trading in automated way. So, I just want to learn more about what are other risks in in copy trading.

[passwordnow]

I've known this feature on etoro and somehow it's effective if you are good putting your money with another layer of risk since you are already risking your fund through trading it.
If the trader you are copying starts to trade weird and start choosing stocks that you are not even familiar with, then his loss is also your loss.