Futures Copy

Futures Copy

Copy trading is an investment strategy that allows investors to copy the trading behavior of experienced investors in real time. When the copy trader executes a buy or sell operation, the copy trading system will automatically copy the same transaction for the follower in the hope of achieving similar returns.

Advantages of Copy Trading

• Enables investors who lack experience or time to participate in the market with the knowledge and strategies of experienced traders without having to conduct in-depth market analysis themselves.

• Copy trading can also provide learning opportunities, allowing novice investors to improve their trading skills through observation and imitation.

Risks of Copy Trading

• Relying on the decisions of the traders who copy orders means that if their strategy fails, the copycat will also suffer losses. Therefore, the biggest risk is largely the risk of portfolio selection.

• Market volatility may cause slippage, that is, the difference between the actual transaction price and the expected price, which may affect the trading results.

• When the market moves sharply, problems such as insufficient liquidity or system delays may be encountered.

Copy trading is not a 100% profitable product. Therefore, when choosing to copy trade, investors should carefully consider their risk tolerance and conduct sufficient research on the historical performance and strategies of the traders who copy orders.

The difference between a leading trader and a copy trader

A copy trader is a professional trader who manages a portfolio and other users can copy their portfolio. A copy trader is a user who copies the portfolio of a copy trader.