Nikolas Sargeant
Binance, the world’s largest cryptocurrency exchange, has announced the introduction of copy trading for its highly liquid futures products in selected markets.
In a press release shared with Cryptowisser, Binance said the new feature enables users to follow and replicate the trading portfolios and strategies of lead traders. This latest development means that millions of users can simultaneously become lead and copy traders, resulting in more engagement within the community and elevating the experience of the trading community.
Binance revealed that lead traders will receive a 10% profit share and 10% trading commission rebate from copy traders who replicate their trades. Furthermore, they can also create content on Binance Feed, interact with other users and share their trading strategies and techniques.
Copy traders have the opportunity to follow up to 10 lead traders at a time and view the lead traders’ portfolio information, including 7–30–90 day ROI, PNL record, maximum drawdown, and AUM.
Users can also search for lead traders and choose the ones they intend to copy trade from. This feature will lower the barrier to entry for less experienced users as they can now leverage the knowledge and strategies of other traders.
Binance users can activate copy trading on their account with a simple one-click and will receive a copy trading account. With a dedicated copy trading account system, users can view and compare the portfolio and AUM of lead traders.
The Binance copy trading platform is intuitive and user-friendly and also ensures maximum user protection. Binance has introduced several risk management features such as,
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Risk Controls: copy traders can choose their own risk settings, including for Take Profit/Stop Loss, leverage levels, and margin modes.
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Slippage Limits: slippage limits are in relation to the lead trader's executed price and are set at 0.3% for BTCUSDT and ETHUSDT and 0.5% for other futures contracts. To protect copy traders, their orders will not be executed if the slippage limits are exceeded.
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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 investing with a fixed amount per order
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Leverage risk indicators: lead trader portfolios with leverage levels between 10x-20x will have a yellow-color tag, and leverage above 20x will have a red-color tag
While commenting on this latest development, Rachel Conlan, Chief Marketing Officer at Binance, said,
“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.”
Binance is the world's leading blockchain ecosystem and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume.
The cryptocurrency exchange is trusted by millions worldwide and is dedicated to increasing the freedom of money for users. Binance features an unmatched portfolio of crypto products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more.
