Restrictions on Copy Trading (Followers)

1. Opening Restrictions

  (1) Supported Futures Assets 

In the first stage of copy trading products, only a small number of futures are available. Therefore, the follower should be careful to differentiate the futures assets when copying orders. 

• To conduct copy trading, please visit the Copy Trading page (all futures assets on this page are available for copy trading), and follow a trader to begin copy trading.
• If you open positions on the Futures Trading page directly, said positions will become independent positions.

（2）Position Leverage

In terms of copy trading, there are no restrictions on leverage for followers, which means followers can place an order according to the leverage they set for the current futures instead of conforming to the trader’s leverage. Meanwhile, copy trading allows followers to adjust the leverage for the copied positions.

Needless to say, it should be noted that leverage for copy trading is still subject to futures assets. That is to say, different futures assets require diverse leveraging strategies.

(3) Futures Margin

AscendEX implements order mode using a fixed margin for futures copy trading, which means that throughout copy trading, followers can set the margin for each copied order at their discretion. This is also known as the amount of a single copied trade. The system will place orders according to your margin amount: Amount of copy trading = Collateral * Leverage. If the balance available in the follower’s futures account is less than the margin set, the copy trading order will fail to launch.

For example, if the follower has set the margin amount to 1,000 USDT, whenever the follower conducts copy trading, the system will place an order of 1,000 USDT. If the leverage of the copy trading is 20 times, then the amount of the copied trade is: 1,000 USDT * 20 = 20,000 USDT.

(4) Max Amount of Copy Trading

When the follower follows the trader to open a position, the maximum limit of the futures margin is equal to the maximum amount of copy trading, which can be set by the follower. When the sum of the required margin for the follower to open a new position and the current position margin exceeds the maximum amount of the aforementioned copy trading, the position for copy trading will not open successfully.

For example, let’s assume the follower has set the margin of a single copy trading transaction to 100 USDT and the maximum amount of copy trading is 300 USDT. After you copy the trader’s positions 3 times, the maximum limit of copy trading will have been reached. Due to this restriction, the follower cannot continue opening positions.

(5) Copy Trading Multiplier

AscendEX’s copy trading not only supports fixed-margin orders but also offers the flexibility to use multipliers. With this option, followers can fine-tune their investment strategy by setting a multiplier that determines the amount allocated to each copied trade.. When a trader they are following initiates a position, the system automatically replicates the trade size based on the follower's chosen multiplier.

For instance, if a follower sets a multiplier of 3x and their trader opens a position of 0.1 BTC, the system will copy the position with a size of 0.3 BTC for the follower.

To ensure a seamless experience, here are some key points to keep in mind when using multipliers:

1. Followers can set a multiplier within the range of 0.01x to 100x, providing a wide spectrum of investment possibilities.

2.  In cases where the copied position size exceeds the upper or lower bound set by the contract when using a multiplier, the system automatically adheres to the contract's risk limits for the copied position by default. This ensures that risk management is maintained within acceptable parameters.

Example 1: Consider if a follower chooses a 0.01x multiplier to copy the trader who opens a 0.1 ETH position. In this scenario, The copied position size would be calculated as 0.001 ETH (=0.1 ETH*0.01). However, since this size falls below the minimum limit of 0.01 ETH, the system will automatically adjust it to meet the minimum requirement, resulting in a copied position size of 0.01 ETH for the follower's copied position.

Example 2: On the other hand, consider if a follower chooses a 100x multiplier to copy the trader who opens a position of 100,000,000,000 BTC and the copied position reaches 10,000,000,000,000 BTC (=100,000,000,000 BTC*100). This would exceed the upper limit set by the contract and the system will automatically cap the size to the maximum limit of 100,000,000,000 BTC for the follower's copied position.

3.   It’s essential to note that followers can adjust the multiplier during the copy trading period, providing flexibility to modify their investment strategy based on market conditions and risk preferences.

4.  In situations where the required margin for opening a position exceeds the available margin in the follower's account due to the chosen multiplier, the copy trading order will fail.

2. Closing Restrictions

Throughout copy trading, the follower will follow and copy the trader's operations, which include selecting futures assets, going long or short, and opening and closing positions. At the same time, the system also allows the follower to manually close positions, or set TP/SL to close positions in the process of copy trading.

• When copy trading begins and the trader closes a position, the current copied position will be closed according to the market price following the trader’s operation.
• After copy trading begins, users are permitted to manually close a position or close the position by setting TP/SL. Thus, before the trader closes a position, users can close the position manually, or close the position after the TP/SL previously set has been triggered.
• If there are independent positions (the ones that you have directly opened on the Futures Trading page), you will not follow the trader to close these positions. Instead, you can manage your positions.