Announcements Gate.io Copy Trading: Description of Copying Logic and Potential Problems

Gate.io Copy Trading: Description of Copying Logic and Potential Problems

2023-06-05 06:38:28 UTC 15238 Read

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## 1.Copying Logic
Copying method: copy the position - copiers will place an order only after the lead trader has a position.

How a lead trader places an order: the order price includes limit price and market price.

How a copier places an order: only the market price is available.

Trading logic of orders: the copiers will copy the operations of the lead trader. When the lead trader closes the position, the copier will also close the position. Some orders may be split into multiple different orders, and the final transaction time of different split sub-orders may be different.
## 2. Potential Problems
**The income difference between the orders of the lead trader and copier: **If the lead trader places an order according to the limit price and the copier's order is placed according to market price, since each order may be split into multiple sub-orders when closing the position, it may cause a different closing time. In this case, if you encounter a future with poor liquidity, it will lead to a large difference between the copier's order of market price and the lead trader's order of limit price, resulting in a difference in the order's income.

**For example: **The lead trader places an order at 14:40 according to the limit price of 1000, which is split into two sub-orders. One sub-order is placed at 14:41, with the market price being 1001, and the other is placed at 14:42, with the market price being 998. Finally, the closing price of the order for the lead trader is 1000, and the average closing price of the copier is 999.5. That is, there is a different income for this order between the lead trader and the copier.
## 3. How to avoid this problem?
At present, the Gate.io Copy Trading platform is working hard to improve the function and trying to avoid such problems. At present, copiers better choose Futures with good liquidity to trade as much as possible to avoid income differences caused by price differences.
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Gate.io copy trading is a trading aid that allows copiers to synchronously copy the lead trader's operation behavior on contracts. Copiers don't need to pay additional fees to follow the lead trader, but give the lead trader a small part of the profit generated by copying.

[Click to enter: follow the best traders](https://www.gate.io/copytrading "Click to enter: follow the best traders")

Gate.io Copy Trading - Copiers Guide: https://www.gate.io/help/quants/copy-trading/26922/gate.io-copy-trading-copiers-guide

More Instructions on Copy Trading:

Future: https://www.gate.io/help/quants/copy-trading

Spot: https://www.gate.io/help/quants/spot-copy

If you have any questions about this activity or copy trading products, please feel free to contact us through Telegram or customer service:

Copy Trading Telegram Group: https://t.me/Gateio_Copy_Trading

Copy Trading Customer service: https://t.me/Gate_CopyTrading

Gate.io is your gateway to crypto. 
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Gate.io
June 5, 2023

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