Binance Launches Copy Trading to Lower Barrier to Entry for Beginners
Users Can Be Both Lead and Copy Traders, Social Tool Can Facilitate Greater Engagement in the Community
COLOMBO, Sri Lanka, Oct. 9, 2023 /PRNewswire/ — Binance, the global blockchain ecosystem behind the world’s largest cryptocurrency exchange by trading volume, is introducing copy trading for its highly liquid futures products in selected markets, enabling users to follow and replicate the trading portfolios and strategies of lead traders. Millions of users can simultaneously become lead and copy traders, which will facilitate more engagement and elevated experiences within the trading community.
Lead traders receive a 10 percent profit share and 10 percent trading commission rebate from copy traders who replicate their trades. Lead traders can also create content on their trading strategies and techniques on Binance Feed to interact with other users.
Copy traders on Binance can follow up to 10 lead traders at a time and view the lead traders’ portfolio information including 7–30–90 day return on investment, profit & loss record, maximum drawdown, and assets under management. Users can search for lead traders and choose the ones that they want to copy trade from. Binance aims to lower the barrier to entry for less experienced users who can now leverage the knowledge and strategies of other traders.
Rachel Conlan, Chief Marketing Officer at Binance, commented, “Binance’s mission is to improve financial access and our products aim to help our users achieve greater control of their own finances. We are meeting the demand of new users who want to learn from and engage with seasoned traders, who in turn, will now have more ways to share and monetize their experience. We believe copy trading lowers the barriers to entry into crypto and can help improve social engagement within the community.”
Users from select markets can activate copy trading on their Binance account with a simple click. Users’ copy trading accounts are separate from their futures accounts so users can manage both trading clearly and efficiently.
Binance has a wide range of risk management features in place for copy trading, including:
- Risk Controls: Copy traders can choose their own risk settings including for Take-Profit/Stop-Loss, leverage levels and margin modes.
- Slippage Limits: Slippage limits are in relation to the lead trader’s executed price and set at 0.3 percent for BTC/USDT and ETH/USDT, and 0.5 percent for other futures contracts. To protect copy traders, their orders will not be executed if the slippage limits are exceeded.
- Choice of Fixed Ratio or Fixed Amount allocation: Copy traders can control the amount they allocate for trades by either following the lead trader’s investing ratio based on their account balance or invest with a fixed amount per order.
- Leverage Risk Indicators: Lead trader portfolios with leverage levels between 10x to 20x will have a yellow tag, and leverage above 20x will have a red tag.
Disclaimer:
Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Futures trading, in particular, is subject to high market risk and price volatility. All of your margin balance may be liquidated in the event of adverse price movement. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. Trading by following and/or copying the trades of other traders involves a high level of risk, even when following and/or copying the top-performing traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance is not a reliable predictor of future performance. Before trading, you should make an independent assessment of the appropriateness of the transaction in light of your own objectives and circumstances, including the risks and potential benefits. Consult your own advisers, where appropriate. This information should not be construed as financial or investment advice. To learn more about how to protect yourself, visit our Responsible Trading page. Copy trading is restricted in certain countries and to certain users. This content is not intended for users/countries to which restrictions apply. For more information, see our Terms of Use and Risk Warning.
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