A managed trading sub-account is a powerful feature designed for traders and investors who wish to delegate management or diversify their strategies without compromising primary account security. It allows a main account holder to create and fund separate sub-accounts, which can then be linked to and managed by designated trading teams or strategies. All trading activity and profits or losses are contained within the sub-account, while the primary account retains ultimate control over fund deposits and withdrawals.
This structure is ideal for diversifying portfolios, implementing specific risk management rules, and allowing experts to manage capital without direct access to withdraw funds. It streamlines the trading process, enhances account security, and helps in building a more robust and varied investment portfolio.
Core Benefits of Using a Managed Sub-Account
Enhanced Security and Control
The primary benefit is the significant boost in security. Withdrawals can only be processed through the main account, adding a critical layer of protection for assets held within any sub-account. This ensures that managers can execute trades but cannot remove funds from the ecosystem, giving the main account owner complete custodial control.
Streamlined Portfolio Diversification
Managed sub-accounts allow you to run multiple trading strategies concurrently. You can tailor each sub-account to different risk tolerances, asset classes, or specific investment strategies. This makes it easier to spread risk and capitalize on various market opportunities without cross-contamination between strategies.
Improved Risk Management
Losses incurred within one managed sub-account do not impact the assets in your other sub-accounts or your main account balance. This compartmentalization is a fundamental risk management tool, helping to isolate and contain potential losses from any single strategy.
Consolidated Performance Tracking
Monitoring the performance of each strategy becomes remarkably straightforward. You can easily track the profitability and efficiency of individual trading teams or specific approaches, gaining valuable insights that inform your future investment decisions. This is crucial for evaluating the success of your diversification efforts.
Access to Professional Trading
For those who wish to leverage expert knowledge without active day-to-day involvement, this system allows you to grant a professional trading team the ability to manage capital on your behalf. All their trading activity contributes to your overall volume, potentially helping you reach VIP fee tiers faster.
How a Managed Trading Sub-Account Works
The system operates on a simple linkage model:
- The Customer (main account holder) creates one or more managed sub-accounts and allocates capital to them.
- The Trading Team (a qualified entity) is granted permissions to manage and execute trades within that specific sub-account.
- Multiple sub-accounts can be linked to different trading teams, and a single trading team can manage sub-accounts for multiple customers.
This creates a flexible and secure environment for collaborative investing and strategy diversification. To explore the tools that facilitate this setup, you can view the real-time management platform.
How to Set Up a Managed Trading Sub-Account
The setup process is designed to be intuitive and user-friendly.
Step 1: Create the Sub-Account
Navigate to the 'Sub-account' section, typically found in your profile dropdown menu. Click on 'Create Sub-account' and select the 'Managed Trading Sub-account' type from the available options.
Step 2: Link to a Trading Team
You will need to obtain and enter the unique UID of the trading team you wish to link to your new sub-account. This securely establishes the connection, granting them trading permissions.
Step 3: Fund and Monitor
Allocate the desired amount of capital to the sub-account. Once funded, the linked trading team can begin operations. You can then monitor all activity and performance directly from your main account dashboard.
Frequently Asked Questions
Who is eligible to use managed trading sub-accounts?
All users can register as Customers to create and own sub-accounts. To qualify as a Trading Team that can manage sub-accounts, an entity must typically be an institutional-grade trader and meet a minimum VIP level requirement (e.g., VIP 1) on the platform.
Can I withdraw funds directly from a managed sub-account?
No. A key security feature is that withdrawals are only permitted through the main account. The trading team can trade but cannot withdraw funds, ensuring your assets remain secure.
How does this help me achieve VIP status faster?
All trading volume generated across your main account and all linked sub-accounts is aggregated. This combined volume counts towards your overall trading tier, potentially accelerating your progress to higher VIP levels and their associated lower fee rates.
What happens if a trading strategy in one sub-account performs poorly?
Since each sub-account is isolated, the losses are contained within that account. The performance and capital in your other sub-accounts and your main account remain unaffected, effectively limiting your risk exposure.
How many managed sub-accounts can I create?
Platforms usually allow users to create multiple sub-accounts. This enables you to engage several trading teams or test numerous strategies simultaneously for effective diversification.
Where can I find reputable trading teams to manage a sub-account?
It is crucial to conduct your own thorough due diligence. Many platforms provide official channels or marketplaces where verified trading teams showcase their historical performance and strategies. Always explore more strategies and review their track records carefully before linking your capital.
Disclaimer: This content is for informational purposes only and is not intended to provide investment, legal, accounting, or tax advice. Digital assets are inherently volatile and carry a high degree of risk; you may lose your entire investment. Always conduct your own research and consult with independent professional advisors before making any financial decisions. Ensure you understand the risks involved and comply with all local laws and regulations.