The Beginner's Guide to Copy Trade (Trader)
How to become a trader?
1. Go to MEXC Copy Trading
2. Click "Become A Trader"
When applying to become a trader, make sure that you do not have any Copy Trade positions, open positions or orders (market orders and stop orders). You should also not be following any traders.
3. Fill in the application information
These are the required contents when filling in the application form on the new page:
Email (required)
a. If the user's MEXC account is already linked to an email, there's no need to fill in another one (if the user wants to change the email, he needs to contact Customer Care to change it at the backend).
b. If the user's MEXC account is not linked to an email, he must enter one. We will use email to send important information such as application reviews.
Telegram account (optional)
Mobile number (optional)
Check the Copy Trade Agreement checkbox and submit the application
4. Awaiting Trader Application Approval
When a user enters the Copy Trade page while awaiting approval for their trader application, the following content below will be displayed:
A button that reads "Trader application is under review".
Clicking or hovering over the button will reveal the following message: Your application is currently under review. Please monitor your SMS/email for the review outcome notification.
Users whose trader application is under review or approved will no longer be able to follow other traders.
5. Once approved, traders can start leading trades.
How to start Copy Trade?
1. Lead Trade Criteria
USDT-M perpetual futures
Position mode: Hedge mode
Position opening type: Isolated mode
Maximum leverage multiplier: 5-200x, typically. The maximum leverage multiplier allowed for copy trades is different depending on the trading pair.
Traders can view all lead trade trading pairs, as well as their maximum leverage multipliers and minimum opening amounts under the Copy Trade homepage - My Lead Trades - Valid Lead Trade Conditions.
Users will be notified when new trading pairs become available for lead trades.
How to manage Copy Trade?
2.1 How To Check Current Lead Trades?
In the Copy Trade system: Go to Manage Lead Trades - Current Trades. Clicking on [Close] will reveal a pop-up window to alert you that the position will be fully closed at market price.
Copy Trade system: Trader - Current Trades
Clicking on [Close] will reveal a pop-up window to alert you that the position will be fully closed at market price.
2.2 Futures Trader Page - [Current Trades] Feature
Once a user becomes a trader, the [Current Trades] feature will appear on the Futures page, where valid trades will be shown.
Futures page - [Current Trades]
Clicking on [Close] will reveal a pop-up window to alert you that the position will be fully closed at market price.
Clicking on [Lead Trade Conditions] will reveal a pop-up window showing the corresponding lead trade conditions.
2.3 Partially Closing Trader's Position
When a trader partially closes a position, the follower's corresponding copy trade position will also be partially closed based on the trader's closing ratio.
Let's take an example where the trader's initial lead trade is 1,000 cont., and the follower's copy trade is 100 cont..If the trader closes the position partially by 200 cont., the follower's position will be partially closed by: 100 * (200 / 1,000) = 20 cont.
The following scenarios may lead to the partial closing of the trader's position. At this point, the follower's corresponding copy trade position will be partially closed based on the trader's closing ratio.
Trader partially closes the position
The position was partially liquidated
The position was reduced by the system
For example:
The trader's initial lead trade information is as follows: BTC_USDT, 20s, long, 0.5 BTC. Let's pretend that the position was also formed by an order.At this point, if the position is partially closed, the lead trade information will change to: BTC_USDT, 20s, long, 0.4 BTC. This indicates a 0.1 BTC drop when the position was partially closed.
Accordingly, the follower's initial copy trade information is as follows: BTC_USDT, 20x, long, 0.05 BTC. When the trader's lead trade position is partially closed, this copy trade order will be closed according to the ratio, i.e. closing quantity = 0.05 * (0.1 / 0.5) = 0.01 BTC
2.4 How To View Lead Trade History
On the Manage Lead Trades page, switch to [History] to view information on past lead trades.
How to manage followers?
Clicking on [My Followers] allows you to view the list of current followers, time followed, and copy trade account equity. You can also exclude a follower via the action bar to temporarily remove the follower from your follower list.
If you do not want to be followed, go to Settings and disable the Allow Following option.
When the action bar button is clickable (appears blue), you can click it to exclude the follower, temporarily changing the follower's status to Not Following.
If the follower is holding a copy trade position under the trader's name, or the follower's copy trade account equity is greater than the minimum copy trade amount, the button will be unclickable (appear grey), i.e. the follower cannot be excluded.
How To View Profit Share?
On the [My Lead Trades] page, under the [Profit Share Stats] tab, you can see the data pertaining to profit sharing.
Profit Share Calculation Rules
- Profit sharing with the trader will only occur if the total realized PNL of the followers' closed copy trade positions is greater than 0.
- Partially closed copy trade positions will not be included in profit share calculations
- Profit Share Settlement Time: Profit share is settled daily, with settlements occurring between 16:00 and 17:00 (UTC) each day, settling the profit share for the previous 24 hours. The profit share settlement process requires some time, typically completed before 17:00 (UTC).
- Profit share will only be settled when the follower has no related positions; otherwise, it will be deferred to the next settlement day.
- If a follower cancels their follow, the profit share will be settled immediately.
- Pre-Freeze: To ensure the profit share earnings of the trader, when a follower's copy trade position is completely closed, if the total realized PNL for that day is greater than 0 (otherwise no pre-freeze will be carried out), the system will pre-freeze a portion of the profit funds into the system's intermediary account according to the profit share ratio.
- Actual Profit Share: The profit share for the previous 24 hours will be settled daily between 16:00 and 17:00 (UTC). Calculate the total realized PNL of the copy trade positions that were completely closed the previous day. If the result is greater than 0, proceed with profit sharing; otherwise, no profit sharing will occur.
- Calculation Formula: The trader's actual profit share for the day = the total sum of PNL realized by all copy trade positions of their followers * Profit share ratio.
- If there are multiple followers, individual calculations must be performed and subsequently aggregated.
- Return of Pre-Freeze Funds: The sum of pre-freeze - Trader's actual profit share for the day (According to the profit share rules, the sum of pre-freeze may be greater than the trader's actual profit share. The remaining portion after profit sharing to the trader needs to be returned to the follower's copy trade sub-account USDT-M futures wallet).
Expected Profit Share Calculation Rules
- Trader’s expected profit share for the current day = (Realized PNL + Unrealized PNL) of the trader’s follower * Profit share ratio.
- If the trader has multiple followers, the estimated profit share for each individual follower is calculated and then aggregated.
- The expected profit share is updated every 5 minutes
- The expected profit share is for reference only. Actual profit share is based on profit sharing at the time of settlement.
- Reference Example:
- Trader A (profit share ratio 10%) only has 1 follower, Follower B. The trader opened 2 copy trade positions on the same day (the follower also followed the 2 positions). Subsequently, one of the copy trade positions of the follower was closed, while the other remained open.
- Follower B's closed copy trade position has a realized PNL of 100 USDT.
- The other copy trade position the follower is still holding has a realized PNL of -10 USDT (after deducting trading fees and funding costs), and an unrealized PNL of 220 USDT. In this case, the expected profit share of Trader A = (100-10+220) * 10% = 31 USDT
Other Profit Share Calculation Rules
- Profit Share Ratio: The default profit share ratio when applying to become a trader is 10%. You can click the icon to apply for a change in the profit sharing ratio, with a range of (1% ~ 15%]. After approval in the backend, the new ratio will take effect, with a maximum of one modification allowed within 30 days.
- Profit Share History: Display the trader's historical profit share and profit share details.
Check traders on your watchlist
You can check the details of traders on your watchlist under Watchlist on Copy Trade page.
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Risk Alert:
Due to factors such as depth, market changes, and volatile market conditions, please note that the opening/closing prices and yield in followers' copy trades may differ from those of their traders.
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The MEXC Team