Binance, one of the world’s largest cryptocurrency exchanges, has introduced a new copy trading feature for its futures products. This innovative offering is now available in select markets, enabling users to closely replicate the trading strategies and portfolios of seasoned traders on the platform.
The copy trading functionality provides two modes – “fixed amount” and “fixed ratio” – to give users flexibility in how they manage their investments. With a fixed amount, copy traders can designate a specific dollar amount they wish to allocate towards copying other traders’ positions. The fixed ratio mode allows them to adhere to lead traders’ strategies proportional to their account balance, rather than a static figure.
According to Rachel Conlan, Chief Marketing Officer at Binance, this new feature aligns closely with the company’s central mission – enhancing financial access and control for their users. It aims to address surging demand from novice traders who aspire to learn from and directly engage with more experienced counterparts. Additionally, seasoned traders now have expanded avenues through which they can share their expertise and get compensated.
While publishing their strategies and techniques on Binance’s Feed, lead traders can earn a 10 percent profit share from copy traders who mirror their trades. They also receive a 10% trading commission rebate, incentivizing knowledge sharing and rewarding them for letting others benefit from their skills.
Copy traders are able to follow up to 10 lead traders at once, with comprehensive access to insights on their portfolios – including returns across varying time frames, detailed profit and loss records, maximum drawdown, and total assets under management. This level of transparency ensures copy traders can make well-informed decisions about which traders to follow based on trading style and risk tolerances.
Binance’s introduction of copy trading for futures comes amidst growing regulatory scrutiny of the crypto space. In 2021, the exchange withdrew certain services like futures and leveraged tokens for Australian users to adhere to local regulations. The company also paused new account creation in the country for trading options, margins, and leveraged products, showcasing its commitment to compliance.
#Binance #CopyTrading #Futures #Cryptocurrency #Blockchain #Investing #Trading
