Q1: Basic Logic of Live Copy Trading
A: 1. Copy Trading Logic
(1) Copy trading executes orders based on the trader’s position adjustment amount. The copied trade amount (rounded down) = copy ratio × position adjustment amount. If the amount is less than the contract’s minimum copy amount, no copy is executed.
(2) The system calculates the tradable amount for the copy trader based on their available funds and selected contract leverage. If the copied trade amount is less than or equal to this calculated amount, the copy is successful; otherwise, it fails.
(3) Without considering copy ratio, leverage system, or single order limits, the copy trader will continuously replicate the lead trader’s position changes until their copy funds are insufficient. If the lead trader reduces their position in a contract, the corresponding funds for the copy trader will be released as available funds.
(4) When using leverage for copy trading, the copy trader needs to transfer margin. The margin will be moved from the spot account to the copy trading sub-account (in the form of a virtual sub-account) and is dedicated to following the lead trader’s trades. After copy trading ends, the system will settle the sub-account, deduct profit sharing and trading fees, and transfer the remaining funds back to the spot account.
(5) Copy Trading Modes: Currently, the live copy trading platform supports two modes: “by total asset ratio” and “fixed multiplier.” The smart mode defaults to “by total asset ratio,” while advanced mode supports both “by total asset ratio” and “fixed multiplier.”
- By Total Asset Ratio: Total assets = available funds + value of held positions. For example, if the lead trader has 50 USDT available and holds a BTC/USDT position worth 50 USDT, the total assets are 100 USDT. If they place a 10 USDT order, the usage ratio is 10%. If your total assets are 500 USDT, your copy trade amount will be 50 USDT (500 × 10%).
- Fixed Multiplier: For example, if you set a 3x multiplier, when the lead trader opens a 1 BTC/USDT contract, you will copy the trade at 3x, opening a contract worth 3 BTC (1 × 3).
A: 2. Example of Copy Trading Logic
Without considering trading fees and funding rates:
The lead trader has 1,000 U in funds, uses 100 U to buy contract A with 100x leverage, building a position worth 100 × 100 = 10,000 U.
The copy trader has 100 U in copy funds, sets a copy multiplier of 0.1, and uses 20x leverage.
In theory, the copy trader will follow the above trade with a total copied position of 10,000 × 0.1 = 1,000 U.
To copy, the required margin is 1,000 / 20 = 50 U, so the copy trader’s remaining available funds are 100 – 50 = 50 U.
Next, the lead trader uses 200 U to buy contract B with 100x leverage, building a position worth 200 × 100 = 20,000 U.
Now, the copy trader has 50 U of available funds left, with 20x leverage, meaning they can build a maximum position worth 1,000 U. If they want to continue copying the lead trader’s B contract purchase, they can only build a 1,000 U position—at this point, all copy funds are used up.
If both A and B tokens rise by 10% and the lead trader closes both positions:
Lead trader’s profit: (11,000-10,000) + (22,000–20,000) = 3,000 U
Copy trader’s profit: (1,100–1,000) + (1,100–1,000) = 200 U
A: 3. Potential Issues with This Copy Trading Logic
Copy traders may notice their profits differ from the lead trader’s. These discrepancies can result from differences in principal, leverage, copy multiplier, and other settings. It’s recommended that copy traders set their parameters carefully and prioritize copying lead traders with similar fund sizes.
For more on copy trading logic issues, see Q2 and Q3.
Q2: Why Might the Lead Trader’s and Copy Trader’s Profit Rates Differ?
A: 1. Differences in principal between the lead and copy traders can cause different profit rates. If the copy trader’s funds are insufficient, they can’t follow the lead trader’s subsequent trades.
Note: The current copy trading logic is that the copy trader will continue to follow the lead trader’s position changes until their available funds are depleted. If previous trades have already used up all copy funds, the copy trader cannot continue to copy further trades. See Q1 for details.
A: 2. If the lead trader already has a position in a contract before the copy trader starts copying, and then adds to the position after the copy trader joins, their costs for that contract will differ, resulting in different profits upon closing.
A: 3. If the copy trader enables leverage in their settings, this can also lead to profit differences compared to the lead trader.
A: 4. If the lead and copy traders use different leverage, there may be discrepancies. Currently, for risk control, the maximum contract leverage for copy traders is 20x, while some lead traders can use up to 100x. This difference can cause profit discrepancies.
A: 5. If the copy trader uses a fixed copy multiplier. The copy multiplier means the copy trader replicates the lead trader’s position changes by a set multiple. For example, if set to 10x, when the lead trader adds 10 contracts, the copy trader adds 10 × 10 = 100 contracts. The copy multiplier can be set from 0.01 to 100x.
It’s recommended to set the copy multiplier based on the ratio of your funds to the lead trader’s. For example, if the lead trader’s equity is 1,000 USDT and the copy trader’s funds are also 1,000 USDT, set the multiplier to 1x (1,000 / 1,000). If the copy trader’s funds are 5,000 USDT, set the multiplier to 5x (5,000 / 1,000).
Q3: How Is the Lead Trader’s Profit Rate Calculated?
A: 1. Total Profit and Total Profit Rate Calculation Formula
Initial account equity = available balance at creation
Profit = ending account equity (including unrealized P&L) – initial account equity (including unrealized P&L) + withdrawals during the period – deposits during the period
Profit rate = profit / (initial account equity + deposits) × 100%
A: 2. 7-Day Profit and 7-Day Profit Rate Calculation Formula
Initial account equity = account equity 7 days ago (including unrealized P&L)
Profit = ending account equity (including unrealized P&L) – initial account equity (including unrealized P&L) + withdrawals during the period – deposits during the period
Profit rate = profit / (initial account equity + deposits) × 100%
Q4: When Does Profit Sharing Start to Calculate?
The system triggers the current profit sharing calculation in any of the following scenarios:
A: When a Copy Trader Stops Copying
When a copy trader stops copying, the system will automatically calculate the corresponding profit sharing amount for that user.
A: System Scheduled Calculation (Default Every 7 Days)
By default, the system calculates profit sharing for lead traders every 7 days.
If, at the scheduled calculation time, any of the following conditions exist, profit sharing will not be calculated immediately:
- There are pending orders;
- There are open positions;
- There are unrealized profits/losses;
- The copy trading account’s available balance is negative;
- The lead trader has not enabled copy trading.
The system checks automatically every 10 minutes. Once all conditions are met, profit sharing is calculated and the next 7-day cycle begins.
A: Profit Sharing Status Explanations:
① Profit Sharing Countdown
Status: Settlement conditions have not yet been met; the system is waiting for this period’s profit sharing to enter settlement.
Display: The page will show an estimated settlement countdown.
Rules:
- When the countdown ends and settlement conditions are met, the status changes to "Pending Settlement."
- If there are still open positions, pending orders, etc., settlement will not occur immediately. The system will continue to wait and periodically recheck if settlement conditions are met.
② Pending Settlement
Status: Profit sharing for this period has been calculated and is waiting for the system to execute settlement.
Rules:
- The profit sharing amount for this period is confirmed;
- No user action is required;
- The system will automatically execute profit sharing settlement.
After completion, the status changes to "Settling."
③ Settled, Pending Arrival
Status: Profit sharing for this period has been settled, and the system is transferring the funds to your spot account.
Rules:
- The profit sharing amount is final and will not change.
- Funds are expected to arrive within 24 hours.
- Once settled, you can view the profit sharing record in your spot account and transaction history.
A: Profit Sharing Distribution Rules:
- By default, the system distributes profit sharing automatically.
- The distribution program runs daily, transferring settled profit sharing funds to the lead trader’s spot account.
- In special cases, the platform may process profit sharing manually.
A: Why Was There No Immediate Settlement After the Countdown Ended?
After the countdown ends, the system checks if settlement conditions are met. If there are still pending orders, open positions, unrealized P&L, or a negative available balance, settlement will not occur. The system will recheck every 10 minutes and settle once all conditions are met.
A: Why Does Profit Sharing Show as "Pending Arrival"?
This means profit sharing for the period has been settled and the system is transferring funds. Funds are expected to arrive in your spot account within 24 hours. Please be patient.
Q5: Why Is the Lead Trader’s Homepage Hidden? What Is the Lead Trader Cooling-Off Period?
A: To ensure top-performing lead traders receive more visibility, the platform will hide some lead traders with low trading activity. These traders will not be searchable by copy traders on the homepage until their trading activity improves, at which point their visibility will be restored.
A: 1. What Circumstances Cause a Lead Trader’s Homepage to Be Hidden?
- Not setting lead trading parameters after approval;
- Not completing the first live copy trade after approval;
- No active positions and no trading records in the past 3 weeks;
- Lead trading status must be active; paused or terminated statuses are not allowed;
- Insufficient lead trading funds.
Note: The platform currently sets a minimum lead trading amount for entry-level lead traders. If the minimum is not met, the system will automatically hide the lead trader until the required funds are added. You can view the minimum fund requirement for entry-level lead traders on the lead trading mode page. The current standard is assets ≥ 300 USDT.
If you meet any of the above conditions, your profile may be hidden. For other reasons, please contact customer support.
A: 2. Explanation of Lead Trader Cooling-Off Period
Currently, the lead trader cooling-off period (system suspension) is triggered mainly by the following situations:
2.1. Lead Trader’s Equity Does Not Meet Current Level Requirements
See the above section on homepage hiding for details.
2.2. External Links or Social Group Links in Lead Trader Profile
The platform strictly prohibits lead traders from contacting copy traders via unofficial channels, such as adding external promotional links or personal contact information (e.g., Twitter, Weibo, WeChat, Telegram, etc.) in their profile. Such actions may affect copy traders’ interests and fund security and are considered violations. On first offense, relevant information will be blocked and the lead trader’s level or permissions may be downgraded; repeat offenses will result in disqualification from live copy trading and public notice of the violation.
Lead traders and copy traders are both internal resources of Gate’s live copy trading. To better protect copy traders’ rights and fund safety, all trading activities must remain within the platform.
Reminder: Lead traders can interact with copy traders via posts and subscription features. Contacting copy traders through unofficial channels is strictly prohibited and will be severely punished if discovered!
2.3. High-Risk Operations
Every trading action by a lead trader impacts the interests and funds of copy traders. The platform repeatedly reminds lead traders to operate cautiously, control risk, use leverage prudently, and protect principal. If a lead trader intentionally engages in high-risk operations that, after platform assessment, may cause significant losses to copy traders, the cooling-off period will be triggered.
Gate is a principled platform: no listing fees, no fake volume, fully transparent, and always prioritizes the interests of every user. Thank you for your support—let’s build a healthy, fair trading environment together!
Note: Currently, only contract lead traders have a cooling-off period; spot lead traders do not.
Q6: How Do I Use the API for Lead Trading?
A: To use the API for lead trading, follow these steps:
- Log in to your Gate lead trader account;
- Navigate to [Personal Center] - [API] - [Create API Key]; or go directly to: Click here
- Create your lead trading API Key on this page;
- Refer to the API documentation to learn how to use the API Key for lead trading. API docs: Click here
A2: To use the API for lead trading on the app, follow these steps:
Log in to your Gate lead trader account;
Navigate to [Personal Center] - [More Services] - [Others] - [API] - [Create API Key];
Create your lead trading API Key on this page;
Refer to the API documentation to learn how to use the API Key for lead trading.
Q7: Can Sub-Accounts Be Used for Lead Trading?
A: Gate supports using sub-accounts for lead trading. Here’s how:
- Log in to your main account;
- Navigate to [Personal Center] - [Switch Account] - [My Sub-Accounts] - [Create Sub-Account];
- After creating a sub-account, you can log in to it via [Personal Center] - [Switch Account];
- Once logged in, the sub-account has similar permissions and features as the main account. You can apply for lead trader status and conduct lead trading with the sub-account.
- The copy trading logic for sub-accounts is identical to that of main accounts.
By following these steps, you can successfully use sub-accounts for lead trading.
Q8: Why Are Copy Trading Signals Sometimes Paused?
A: To ensure lead traders have sufficient risk tolerance, when total account assets (including unrealized P&L) fall below 200 USDT, the system will automatically restrict the issuance of open position and add position signals, but reduce position and close position signals are not affected. Specific rules are as follows:
- Signal Suspension Condition: When a lead trader’s total account assets < 200 USDT, the system will block open position and add position trading signals, only allowing reduce position and close position signals to execute.
- Signal Restoration Condition: When total account assets ≥ 300 USDT, the lead trader will automatically return to normal status and all trading signals can be sent again.
Note: This mechanism is designed to maintain copy trading stability and risk control. Lead traders are advised to always keep their account funds sufficient.
Gate reserves the final right of interpretation for this product.
Disclaimer
The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.
