What is Copy Trading?

Follower trading refers to cryptocurrency trading, the follower can follow more than one excellent trader to place orders, follow orders can automatically synchronize their trading behavior to achieve profit and loss, the follower will not need to manually operate the opening and closing of positions, no need to keep an eye on the market can be directly followed by the trader to automatically carry out transactions.



Follow the single transaction is a copy of the other traders to carry out the transaction process, it will copy the followers of all the operations of the trader. In the traditional financial sector, for example, CFD trading platforms, follow-the-trader trading can be performed completely manually, i.e. manually making the same trades as the chosen trader. But in the cryptocurrency market is supported a fully automated process. In this case, you simply choose which trader (or traders) you want to follow and what percentage of your account you want to allocate to that trader. After that, follow-the-trader trading is completely passive.

Why Choose Copy Trading?

Follower trading has significant advantages for both the trader and the follower: when using follower trading, it frees up the follower's time for other investment activities and allows you to learn from and benefit from other, more experienced traders, and the trader is able to manipulate more of his capital and improve his earnings performance.




Advantages for the follower:



Accessibility: Follower trading lowers the technical threshold for novice traders: Users who are new to perpetual contract trading do not need to have prior knowledge of contract trading, e.g., order placing process, trading techniques, etc., thus making it ideal for novice traders;

Access to more professional trading techniques: Follow orders trading allows you to learn from more experienced traders by observing more professional traders: all the professional trading records of traders that you can imitate can be used as a source of knowledge to expand your trading techniques; through follow orders trading, you can review and analyze the professional techniques, which is a very good learning channel;

Diversified investment portfolio: with a single trading income in the investment income type up to the division, belongs to the passive income; passive income investment products to join the investment diversification; for novice traders, passive income can make up for the downward risk of active income. This is similar to the investment fund: although not capital guaranteed, but to a certain extent, professional fund managers can make up for the downward risk;

More free time: since follow-the-money trading can be fully automated, you can participate in this trading even if you have other things to do. You can use the time you have freed up to learn more about the market. You can completely avoid the fatigue and negativity associated with long hours spent watching the market, and you don't need to worry about missing trading opportunities such as quotes and entries;

Separate emotions from trading: When traders use their capital for high-risk investments, there is a certain probability that they will not have extreme emotions, for example, in the case of a large gain or a loss of capital, the occurrence of emotions can interfere with rational trading behavior, which may lead to less than excellent trading. To a large extent, follow-the-money trading avoids this problem: because follow-the-money trading does not allow your emotions to interfere with manual trading;





Advantages for traders:



More trading capital means more profit: for traders, a good contract delivery history performance can attract more money and can expand their profit rate to some extent;

Profit system: Follower trading is not guaranteed to make a profit; at the same time, only when a profit is made, the trader and the follower trigger the profit-sharing mechanism: this profit system, to a certain extent, reduces the trader's trading pressure.

What kind of followers does Hotcoin provide?

Currently, Hotcoin supports fixed amount, fixed ratio, fixed number of orders, and the same capital ratio for following orders.



Fixed Amount: The fixed margin cost for each follow order. If you set a fixed follow order amount of 50USDT, when a trader opens a position, you will use 50USDT of margin to follow the order. Due to the limitations of contract value and leverage, there may be discrepancies in the actual follow order. (Note: If the amount set is too small to cover the margin required for the smallest order, the follow order will fail).

Fixed Ratio: Each time a position is opened, it will follow the trader with a fixed ratio. Each follow order quantity = trader open position quantity * fixed ratio. Assuming a set ratio of 5, when the trader opens 10 positions, you will open 10*5=50 positions. (Note: the ratio is set too high when the margin may be too much, such as the balance is not enough to follow the order will fail.)

Fixed number of sheets: each time you follow the order to place an order for the number of values you set. If your balance is not enough to order this value, then the maximum number of orders.

The same ratio of funds: the margin for each position opened by the follower = (trader's order margin / current trader's available balance) * follower's available balance, if the amount is less than the minimum order a margin required to follow the order will fail.


Please choose the appropriate way to follow the orders according to your own situation, and pay attention to risk control.