Binance copy trading feature can be a game-changer for individuals wishing to follow and mimic the trading portfolios and approaches of star traders.
With the introduction of copy trading for its extremely liquid futures products in a few markets, Binance, the largest cryptocurrency exchange in the world, will make a ground-breaking move that will completely redefine the landscape of cryptocurrency trading.
According to a press statement provided to Coinspeaker, this ground-breaking feature would enable millions of users to simultaneously become lead and copy traders, fostering a vibrant community of traders looking to improve their knowledge of and exposure to cryptocurrency trading.
Introducing Copy Trading on #Binance
Discover and replicate the trades of top traders in just a few clicks.
Let the experts do the work.
Get started 👇
— Binance (@binance) October 9, 2023
How Copy Trading on Binance Works
Copy trading is a trading technique that enables less seasoned traders to imitate the approaches taken by more seasoned and profitable traders. You can invest as if a seasoned trader were managing them for you without having to actively manage your account. With the use of duplicate trading by Binance, this idea is advanced.
In the press statement, Binance emphasized that its copy trading method enables both seasoned and novice traders. Experienced traders can take on the role of lead traders and teach the community their wealth of information and trading techniques while also receiving a 10% profit share and a 10% trading commission refund from copy traders who mimic their trades.
This not only gives seasoned traders a platform to commercialize their knowledge but also motivates them to interact with other users to foster a sense of community among traders.
Binance’s copy trading feature can be a game-changer for individuals wishing to follow and mimic the trading portfolios and approaches of star traders. Users have access to useful data such as the lead traders’ 7-30-90 day ROI, PNL record, highest drawdown, and AUM (Assets Under Management) by following up to 10 lead traders at once.
This openness successfully lowers entry barriers for less experienced traders by enabling users to make informed decisions about which lead traders to follow and which strategies to imitate.
In response to the update, Binance’s Chief Marketing Officer, Rachel Conlan, stated:
“Binance’s mission is to improve financial access and our products aim to help our users achieve greater control of their own finances. We believe copy trading lowers the barriers to entry into crypto and can help improve social engagement within the community.”
Activation and Management that is Simple
The user-friendly activation of copy trading, which only requires one click, demonstrates Binance’s user-centric approach. Users receive a dedicated copy trading account after activation, which makes tracking and managing asset allocation easier. Additionally facilitating informed decision-making, this dedicated account system enables users to quickly compare lead traders’ portfolios and AUM.
Binance has also introduced a number of risk management features for copy traders, including risk controls, slippage limitations, choice of allocation, and leverage risk indicators, to further enhance user protection.
Copy traders are permitted to define their own risk parameters, including leverage, margin types, and Take Profit/Stop Loss levels. Users are given the ability to control risk in accordance with their personal preferences and risk tolerance thanks to this customization.
Binance offers copy traders protection has established slippage restrictions of 0.3% and 0.5% for BTCUSDT and ETHUSDT, respectively, and for other futures contracts. If these restrictions are surpassed, orders won’t be filled, reducing the possibility of losses.