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Terms of use of the copy trading system on Binance

In order for the transaction copying system to work, the investor must have the appropriate API keys permissions.

  • For the spot market: Enable spot and margin trading
  • For the USDT Futures Market: Enable Futures
    For a trader (the author of the strategy available on Copy-Trade), the "Enable reading" is enough.

If an investor creates an API key for the first time and starts trading on Futures for the first time, it is necessary to top up the account balance first. Through the Wallet (Assets) section, transfer funds from the Spot account to USDT Futures (thus opening a Futures Account) and then set the appropriate settings in the API keys.

 

General principles of operation of the copy trading system - a memo for the trader and investor.

For all markets - income and loss statistics on strategies are taken into account from the beginning of the day (UTC) on the connection date, regardless of the connection time. For correct calculation, it is recommended not to make independent transactions on the day of connection to the strategy.

Market of the strategy - spot

  • When the client connects to the trader, the client's assets remain in the same form and are not converted into assets like the trader's
  • The client needs to have a balance in the currency in which the trader trades. For example, USDT.
  • After connecting, only new trader orders are copied to the client
  • Copying of transactions occurs in the same proportion, taking into account the possible difference between the size of the trader's deposit and the client's
  • Copying of transactions occurs only if the client has an asset corresponding to the trader's trade. The client needs to have a balance in the currency in which the trader trades. For example USDT.
    • If both the trader and the client have USDT and the asset purchase goes for USDT, the order will be copied
    • If the trader trades for BTC, and the client does not have BTC, then the client will skip this transaction.
      The alternative is that the trader needs to buy BTC for USDT and then perform the operation for BTC. In this case, all transactions with the client are copied (subject to the availability of USDT).
  • It is important for a trader to remember about the amount of funds in management on his strategy. The trader's personal account at Copy-Trade allows him to see these indicators. With a high volume of funds and relatively low liquidity within the asset, short-term sharp changes in the value of the asset are possible.
 

Market of the strategy - Futures USDT

  • The minimum recommended deposit is $ 500 (taking into account the exchange's restrictions on a minimum order of $ 10 and the need to correctly set the proportions in trading).
  • When the client connects to the trader, the client's positions (if any) are closed by the market in USDT, if the trader does not have similar positions.
  • When connecting and opening orders, the client synchronizes: trading leverage in a specific asset, margin type (cross/isolated), trading mode (one-sided/hedge), single asset mode or multi-asset mode.
  • Copying of transactions is carried out in proportion, taking into account the difference between the size of the trader's deposit and the client.
  • In the case of self-opening positions by the client on his account manually, these positions will be automatically closed by the market within 1 minute if the trader does not have this position.
    Except for the situation when the client increases/reduces the size of the position already opened by the trader and thereby violates the principles of proportional copying at will.
  • It is important for a trader to take into account the size of leverage and the size of deposits under management in his strategy.
    • It is important for a trader to take into account the sizes of minimum and maximum orders for assets in accordance with the selected leverage.
    • If a trader opens the minimum possible order size inside an asset with a certain leverage, and the client's deposit is lower than the trader's deposit, the system will not be able to set a proportionally lower position volume (because it is not physically accepted by the exchange). The client will miss this transaction. As well as in case of exceeding the maximum position volume, the client will have the maximum allowable volume open, regardless of the fact that the position should be proportionally larger.
  • If the trader had previously opened a position, then the client connected to the trader and the trader gets the position, this transaction will not take place with the client. Perhaps this parameter will be implemented in the next system updates.

 

If there were open positions on the user's account at the time of disconnection from the strategy, the user needs to close them independently.


This condition must be taken into account both when the investor independently disconnects from the strategy, and when automatically disconnecting, if the investor does not pay the trader's commission within 3 days from the moment of invoicing.

If it is necessary to withdraw funds from a futures account, it is necessary to take into account open positions and deposit loading into them. In case of withdrawal of a significant part of the deposit during trading and copy trading, you automatically increase the risk in open transactions.
Deposits to the account do not affect copy trading in any way.