1. How to become a lead trader

1.1 Onboarding as a registered trader

Eligibility:

<1>You must have an HTX account.

<2>You must submit an application to be a copy trading trader: Click "Become a Trader" on the "Copy Trading" page (HTX website >> "Derivatives" in the upper navigation bar >> Copy Trading) and fill in the application form. You will become a registered trader on HTX if your application is approved. We will notify you of the results via email and Telegram.

Note 1: In copy trading, followers copy all their trader's positions until the account runs out of funds, regardless of the copy units, leverage, and position limit for a single order.

Note 2: A trader cannot follow other traders.

 

Procedure:

a. Go to Derivatives >> Copy Trading, click "Become a Trader" and fill in the application form. b. After your application is approved: Go to Copy Trading page >> click Trader Info >> Enable Trader Mode. c. Complete copy trading settings and sign the Registered Trader Agreement. You can now lead trades to earn profits.

1.2 Trader's margin

A trader's margin refers to the collateral in the trader's USDT-margined Futures account, which can be transferred in/out by the trader at any time.

 

2. Leading trades explained

2.1 Applicable trading pairs

HTX currently supports 30 USDT-margined futures trading pairs like BTC/ETH/DOGE/ARB/OP/LTC/LINK for Copy Trading. The specific pairs are subject to changes based on user feedback.

2.2 Order type

HTX currently supports two order types for copy trading: limit order and market order. Traders can choose as needed.

Moreover, both cross margin mode and isolated margin mode are available for copy trading.

2.3 Description of parameters

You may set parameters for copy trading after you have enabled the Trader Mode (Copy Trading >> Trader Info >> Enable Trader Mode). The settings include profit sharing ratio and copy unit, and take effect immediately after being set.

<1>Profit Sharing percentages: You may select one from 10%, 15%, 20%, and 25%.

<2>Copy Unit (USDT): Minimum principal amount of a copy trade. Followers and lead traders have the same number of copy units in a copy trading relationship. For example, a trader has set their copy unit at 20 USDT and a follower has set their copy unit at 10 USDT. If the trader opens a position with 2 units (2 * 20 = 40 USDT in principal), then the follower shall also open a position with 2 units (2 * 10 = 20 USDT).

Note: A position may be opened with more than one trading unit. You are advised to set a moderate copy unit size to better manage the overall position size.

2.4 Description of statistics

Today's Profits (USDT): The sum of daily profits contributed by your followers.

Total Profits (USDT): The total profits accumulated from your followers.

Copied: The total number of copied trades made after the Trader Mode is enabled.

Followers: The total number of your current copy trading followers.

Trading Days: The trading-day counts since the first copied trade made after the Trader Mode is enabled.

PnL%: The current profit/loss percentage.

Win Rate: The to-date ratio of the number of profitable trades divided by the number of total trades since the beginning of copy trading.

Fund Flows: The detailed amounts and time of profit sharing entries.

2.5 Risk management

<1> There is a position Llmit for trading futures in copy trading. When the combined futures positions of the trader and the followers reach the set position limit, a new order for opening a position will no longer be copied by the followers:

<2> Traders may customize their leverage within the trading pair's allowable leverage range. Leverage, set after the Trader Moder is enabled, can no longer be adjusted.

<3> Traders and followers should choose the cross margin mode for copy trading.

 

3. Profit sharing

A pre-determined profit share is automatically allocated to the trader upon profitable closure of a copied position (manual or following the trader).

When followers stop following their trader, any open copied positions will be automatically closed. Profits from these closed positions will be distributed according to the trader's pre-set profit sharing ratio.

Profit Sharing Ratio: Traders need to set this parameter when enabling the Trader Mode.

 

4. FAQs

4.1 Why is a trader's PnL% different from that of their followers'?

<1>The differences in principal size between a trader and their followers can lead to varying returns. When a follower runs out of available funds, they will be unable to copy the trader's subsequent orders.

In a copy-trading relationship, a follower copies any orders placed by their trader until the follower's funds are used up. If a follower's funds have been taken up by the trader's existing positions and orders, this follower will then be unable to copy the trader's subsequent orders.

<2>When a trader holds both long and short positions of the same contract (Hedge mode), the follower's position only synchronizes the trader's net position changes instead of copying all orders made under the long and short positions.

<3>If a trader already holds a position of a symbol and is then followed by a follower, should the trader add to the position, the trader and the follower will have different entry prices and therefore different profit ratios.

For example, a trader longs one BTC contract at a price of 20,000 USDT and another at 22,000 USDT, resulting in an average entry price of 21,000 USDT. A follower follows this trader sometime between the two orders and only copies the second order: long one BTC contract at 22,000 USDT. When the BTC price falls to 21,500 USDT and the trader closes positions, the trader earns 1,000 USDT (2*(21,500-21,000)) while the follower loses 1,000 USDT (22,000-21,000).

<4>If a follower sets leverage for copy trading, yields between the follower and the trader will vary after their positions are closed.

4.2 How is a trader's PnL% calculated?

Total PnL% = PnL% in the current calculation period + Carryover PnL% (Sum of PnL% in each previous calculation period)

For more details, please read New Rules Explanation for HTX Copy Trading Profits