The landscape of copy trading is evolving with the introduction of more user-controlled features. A significant update now allows traders to set their own leverage for copy trading pairs, providing greater flexibility and personalized risk management. This guide explains everything you need to know about this new functionality.
What Is the New Leverage Setting Feature?
This feature enables you to customize the leverage used when your account replicates the trades of a chosen expert trader. Instead of automatically matching the signal provider's leverage, you can now set your own based on your individual risk tolerance and strategy.
For example: If you set your BTCUSDT contract leverage to 5X and the expert trader you are copying uses 20X leverage, your account will open positions using your 5X setting when their trade is copied.
How to Set Your Custom Leverage
Configuring your preferred leverage is a straightforward process:
- After selecting an expert trader to follow, navigate to the copy trading settings page.
- Locate and click on the "Advanced Settings" option.
- Within the menu, select "Leverage Settings."
- You will then be able to set the specific leverage for your copy trading pairs.
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Important Consideration: Using extremely high leverage can significantly amplify losses. It is generally advised to use leverage cautiously and maintain it at a level below 20X to manage risk effectively.
How the System Handles Leverage by Default
Understanding the default behavior is crucial, especially if you choose not to manually configure your settings:
- Cross-Margin Mode: If you have not set a custom leverage, the system will use a default leverage of 10X for all copy trades.
- Isolated-Margin Mode: If no leverage is configured, the system will default to using 5X leverage for copied positions.
Handling Existing Copy Trades and Positions
For trades and positions that were opened before the launch of this leverage setting feature, a change will occur upon the expert trader's next action:
You will no longer mirror the trader's leverage for new positions. Instead, the system will use the leverage you have configured in your new settings. If you haven't set a custom leverage, the appropriate default (10X for cross, 5X for isolated) will be applied.
Frequently Asked Questions
Q: Why should I set my own leverage instead of just copying the trader's?
A: Setting your own leverage allows you to align your copy trading activity with your personal risk management strategy. You can lower the leverage to reduce potential losses or adjust it to fit your account size and overall trading goals, independent of the expert trader's choices.
Q: What happens if I don't set any custom leverage?
A: The system will automatically apply a default leverage setting. For accounts in cross-margin mode, the default is 10X. For accounts using isolated margin, the default leverage is set to 5X.
Q: Can I change my leverage setting after I've already started copying a trader?
A: Yes, your configured leverage setting applies to future trades. Any new positions copied from the expert trader will use the leverage you have currently set in your advanced settings.
Q: Does this change affect my existing open positions from copy trading?
A: No, this setting only affects new positions that are opened after the feature was implemented. Your existing positions will maintain the leverage at which they were initially opened.
Q: Is there a recommended leverage for beginners in copy trading?
A: For those new to copy trading or using leverage, it is highly recommended to start with lower leverage multiples (e.g., 5X or below) to minimize risk while you learn how the system works and observe the performance of expert traders.
Q: Where can I find more resources on risk management?
A: Many educational platforms offer comprehensive guides on managing risk in volatile markets. 👉 Get advanced methods for protecting your capital
This new feature empowers you with more control, making copy trading a more tailored and potentially safer experience. Always remember that trading with leverage carries substantial risk, and it is vital to understand these risks before participating.