MEXC Copy Trade Terms Explained
#Futures
#Beginners
#Basic Concepts
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In copy trading, investors grow their assets by replicating the trades of professional traders. Copy trading's popularity is indebted to its simplicity and convenience. To make the most of this trading method, understanding its key concepts and terminology is essential for beginners. This article provides a detailed breakdown of the core concepts in MEXC Copy Trade, helping you better understand this investment tool.
1. Copy Trade Terms
These terms are found on the [Copy Trade Parameter Settings] page. Understanding and mastering them will help you quickly set up copy trading parameters and start copy trading.
1.1 Copy Trade Mode
Smart Ratio: This mode replicates the trader's fund allocation proportionally.
Example: If a trader has an account balance of 1,000 USDT and uses 100 USDT for a trade (10% of their assets), and you have 110 USDT in your copy trade sub-account, your order will use 11 USDT (10% of your assets).
Fixed Amount: In this mode, you invest a predetermined amount of margin for each copied trade.
Example: If you set a fixed amount of 50 USDT, regardless of the trader's trade size, your order will always use 50 USDT as margin.
Fixed Ratio: This mode sets your order quantity as a multiple of the trader's order quantity.
Example: If you set a fixed follow ratio of 0.7 and the trader executes an order of 100 contracts, your order will be for 70 contracts.
1.2 Copy Trade Amount
Available: The displayed available balance refers to the available balance in your Spot account. After submitting Copy Trade information, the system will transfer the specified funds from your Spot account to your Copy Trade account. Note that the copy trading funds must be ≥ 0.01 USDT.
1.3 Account Stop-Loss
Account Stop-Loss: When your account equity reaches the preset threshold, your copy trading relationship will be canceled. All your open orders will be closed at market price, and the remaining assets will be transferred back to your Spot account. Due to market fluctuations, the actual net value at the time of cancellation may differ from your preset value.
1.4 Trader Liquidation Settings
Follow to Close: If the trader's position is liquidated, your corresponding copy trade will also be closed accordingly.
Do Not Follow: Once selected, when a trader's lead trade position is liquidated, your corresponding copy trade position will not follow to close. When that happens, the system will send you a notification, and you must go to My Copy Trades → Current to manage the copy trade position. You can choose to enable Auto Margin Addition to lower the liquidation risk or close the position.
1.5 Risk Control Settings
Maximum Ratio per Order: When the cost of a single Futures order reaches the maximum asset ratio, the system will place the order at the maximum order cost. You can set a maximum order ratio to prevent individual orders from being too large.
1.6 Margin Mode
Follow Trader: If the trader uses the isolated margin mode for their orders, the follower will also use the isolated margin mode. If the trader uses the cross margin mode, the follower will also use the cross margin mode.
Cross: Regardless of whether the trader uses isolated margin or cross margin, the follower will always use the cross margin mode.
Isolated: Regardless of whether the trader uses isolated margin or cross margin, the follower will always use the isolated margin mode.
1.7 Margin Settings
Note: These settings only apply to positions in the isolated margin mode.
Do Not Adjust Margin: Your copy trading position may not be able to adjust the margin to reduce the risk of forced liquidation.
Auto Margin Addition: To protect against liquidation, your copy trading balance will automatically be used as additional margin when your isolated position is at risk. While this helps prevent liquidation, in extreme market conditions, you could lose all funds allocated to this trader.
Base on Trader's Settings: The margin for your copy trading position will be based on the trader's margin settings, including Auto Margin Addition and manual margin adjustment.
1.8 Leverage & Slippage Settings
Slippage: Copy trades use IOC (Immediate or Cancel) limit orders that follow your slippage settings. If no matching orders are found within your specified slippage range, the order will be automatically canceled, and the copy trade will be marked as failed.
2. Trader Terms
These terms are located on the Trader Details page. Here, you can explore the trader's data from multiple dimensions to help you choose a trader that fits your trading style.
2.1 Performance
Total PNL: The cumulative profit and loss from all previously closed trades.
Total ROI: Total profit divided by the sum of historical margin used for copy trading.
Total No. of Followers: The number of unique users following this trader. Multiple follows from the same user are counted only once.
Followers' PNL: The total profit and loss gained by all followers of this trader.
Avg Order Amount: The trader's average order value for opening positions.
PNL Ratio: The ratio of total profit to total loss.
Total Win Rate: The percentage of closed orders with a positive PNL out of all closed trades.
Trading Frequency: The average number of trades per week within the selected time period.
Winning Trades: The total number of lead trades closed with a positive PNL.
Losing Trades: The total number of lead trades closed with zero or negative PNL
2.2 Followers
Size of Lead Trades: The total assets in the copy trading accounts of all current followers of this trader.
Total Equity: Total equity in this trader's Futures account, converted to USDT.
Recent Trade Time: The most recent time the trader opened or closed a position.
Fans: The number of users currently watching this trader.
2.3 Cumulative PNL
Cumulative PNL: Sum of closing PNL of all lead trades within the specific period.
Cumulative PNL Rate: The cumulative profit divided by the total margin used within the specified period.
2.4 Daily Trading Performance
Daily PNL: Sum of PNL from closed orders for the day.
Trading Volume: Total trading volume of all closed lead trade orders.
2.5 Followers' PNL
Followers' PNL: The total profit and loss accumulated by all followers since this trader started leading trades.
2.6 Futures Preference
Futures Preference: Data summary of all closed lead trade orders under different Futures.
2.7 Holding Duration
Holding Duration: The system automatically calculates and displays the holding periods and corresponding ROI based on each trader's strategy, including open positions. Order statistics reflect the holding duration of each order, while position statistics show the holding period for each position.
If you want to learn more about Copy Trade, check out the MEXC Copy Trading Tutorial (App) and MEXC Copy Trade Tutorial (Web).
Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, consultation, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. MEXC is not responsible for users' investment decisions.