eToro has some interesting trading tools to help their clients get the best out of their potential. Copy Trading is one of them.
This Copy Trading system allows any trader to copy another trades from others at eToro. The person who copies the trades is called the Copier and the person whose trades get copied is known as the Copied Trader. That means, at eToro, a trader or Copier can copy trades of another trader.
A copier choosing this method would have those existing trades that are open of a Copied trader with these following terms:
1. All the existing and open positions will stay open on the Copier’s trading account, including the market rate at that exact time when the Copier copies. The rates won’t be the same as it was originally when the trades were opened.
2. Those trades will get the same SL (Stop Loss) and TP (Take Profit) as those original trades.
3. From the very moment when a trader begins copying, the Copied trader’s ongoing and future actions will be mirrored, including the shifts in Stop Loss and Take Profit. The copier trader’s Stop Loss will adjust according to the copied trader’s Stop Loss. That means, if his/her copied trader increases the Stop Loss by adding extra funds to a position, the Copier’s Stop Loss will also increase. But the position amount of the copier will remain the same as the initial fund. That’swhy there may be some differences between the copier’s gain percentage and the copied trader’s gain percentage.
4. In the events when the copier needs to delete a specific trade, he/she will be allowed to close a particular copied trade without needing to close the copy account.
5. If a Copied trader creates a position in a market that is closed by the time it was copied (for example, market break), eToro’s system will create a MO (Market Order) for that copier. When the market is open again, the MO will execute into the position with initial market rates.
6. When the Copier needs to see all the copied trades from a single copied trader, he/she can do that by going to his/her portfolio option, available in the top corner. Then the copier will need to tap over the name of his/her copied trader. Now all the trades will be available on the screen.
Important Note: All the trades that a copier copies will be opened in his/her own account. The copier might notice those at a slight loss. This reflects the spread between Sell rates and Buy rates to show the copier a real-time reflection of the amount he/she will receive if chooses to close the trade. The new trades will be opened at the exact same rates that the copied trader opened his/her trades in the first place. These new trades will use the Realized Equity, which is balance + funds invested. This will be used as the grounds for the proportion of a copied trade.
But these policies, terms,and conditions may change anytime if eToro thinks they need modification. But before then, this is how copying trade will work for a trader at eToro.
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