eToro’s Copy Trading: Does It Work and Should You Be Using It?
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The CopyTrader system is one of the key reasons the platform is considered among the leaders of the fintech revolution. The general idea of the CopyTrader tool is pretty simple: Choose etoro copy trader traders you want to copy, decide on the amount you wish to invest, and copy everything they do automatically, and in real-time, with one click of a button.
Beyond the basic concept of etoro copy trader trading, there are quite a few additional elements to the etoro copy trader. The CopyTrader system gives copiers the option to copy all of the currently open trades of the copied trader. Copiers choosing this method will have the existing open trades of the trader they are copying opened, with the following terms:. The trades will all open in your etoro copy trader at the same time. You will see them at a slight loss which reflects the spread between the Buy and Sell rates, to show you a real-time representation of the funds you will receive if you close the trade.
However the proportion can change when the copied trader changes their available balance — this can occur when the Copied Trader makes a deposit or withdrawal. Copiers choosing this method will only replicate new trades that the Copied Etoro copy trader opens after the copy action starts. The following terms will apply:. The proportion can change when the Copied Trader changes their available balance.
This can occur when the copied etoro copy trader makes a deposit or withdrawal or closes an old trade that was opened before you started copying them if you chose not to copy the already opened trades. When etoro copy trader of these events occur, you might get etoro copy trader that have a different proportion than before.
It is essentially an automated risk control system that allows you to set controls for the entire copy relationship, at a dollar value. Please note that the system will not allow you to reduce the CSL to a value that is so small that it could trigger the closure of the CopyTrader relationship immediately. Keep in mind that the CSL value will change if you change your copy amount. Adding or removing funds from the copied trader will trigger a recalculation of the CSL value as a percentage of the new copy amount.
Remember you can update the CSL at any time. The CSL was put in place to limit your overall exposure to any one trader. With regular trades, whenever you increase the SL, funds are added to the trade from the account balance etoro copy trader represent the extra funds needed to support it. With copied trades, whenever the Copied Trader extends their SL, there are no extra funds deducted from the overall copy amount.
However, if the Etoro copy trader Trader reaches your set CSL regarding an unrealised loss overall, the entire copy relationship will be closed. Therefore etoro copy trader percentage of available copy balance etoro copy trader be greater than the balance of the copied trader. Each CopyFund aggregates various assets or a group of traders and is constantly optimised by machine-learning algorithms.
A thematic investment instrument developed by eToro, Market CopyFunds aggregate various assets into a single portfolio, following a predetermined market strategy or focusing on a specific market segment. For example, the BigTech CopyFund groups major companies from the tech sector, offering an asset for traders who wish to invest in the industry as a whole.
The composition of the CopyFunds is updated periodically, to maintain low risk and increase probability of etoro copy trader. For more information about CopyFunds, please refer to the CopyFunds page. We hope this article has helped you gain a clearer understanding of our Copy systems. How Does CopyTrader Work? Before we begin, we will refer to: The maximum amount of traders you can copy simultaneously is If you close a copied trade manually, the funds from this position will be credited back to your copy balance the amount etoro copy trader to copy that person that is not invested in open positions.
CopyTrader — Copying all trades The CopyTrader system gives copiers the option to copy all etoro copy trader the currently open trades of the copied trader.
Copiers choosing this method will have the existing open trades of the trader they are copying opened, with the etoro copy trader terms: The trades will have the same stop loss SL and take profit TP as the original trade.
If the copied trader extends their SL by adding more funds to a position, your SL will adjust accordingly. However, your position amount will stay the same as its initial amount. You will be able to close a specific copied trade without closing the copy account. If the Copied Trader opens a position in markets that are closed during the time they are copied market break for examplethe system will open a Market Order for the copier.
Once the market is open, the order will execute into a etoro copy trader with the first market rate. CopyTrader — Copying only new trades Copiers choosing this method will only replicate new trades that the Copied Trader opens after the copy action starts.
The following terms will apply: New trades will open at the same rate as the copied trader opens them. The trades will have the same SL and TP as the original trades. You can close a specific copied trade without closing the copy account. So, what happens when CSL triggers? This difference creates several discrepancies between the copied trades and the original trades: How do CopyFunds work?
The weights allocation of each CopyFund can change over time. Market CopyFunds A thematic investment instrument developed by eToro, Market CopyFunds aggregate various assets into a single portfolio, following a predetermined market strategy or focusing on a specific market segment.