Definition and features of the Сopy trading service
Copy trading — an investment service that allows you to earn income in the financial markets by following the strategies of experienced traders. The service enables Investors to make a profit by copying the transactions of professional traders, while Traders can earn commissions for using their Strategies.
Copy Trading platform — a trading platform for traders and investors used to create, search and invest in strategies by automatically copying positions opened and managed by another trader.
Trader — an AMarkets client who has created at least one Strategy in the Copy trading service.
Investor — an AMarkets client investing in Traders’ strategies.
Client — a physical person performing trading transactions (margin trading) in the platform as a Trader and/or Investor in accordance with these Regulations.
Investment in a strategy (Investment) — a special account of an Investor (investment account), intended for copying trades of the selected Strategy.
Strategy — a Trader’s account, created by the Trader to send signals to investments and used for individual trading.
Strategy rating — a list of all Traders’ strategies, sorted in descending order by profitability. The Strategy rating allows Investors to view the performance of different strategies and select a suitable strategy to invest in.
Copy ratio — a copying coefficient. An Investor can scale up and down the Copy ratio. For example, if a Copy ratio = 2, positions will be copied with potential profit (and risk) two times higher than for the selected Strategy.
Loss limit — an investment protection level. It indicates which part of your Investment you can afford to lose if the result of the Strategy is unfavorable. If the Loss limit is reached, an Investor’s account will be automatically unsubscribed from the Strategy until the Investor decides whether he wants to resume copying the Strategy. If he does, he will have to reduce the Loss limit level to zero or set a new Loss limit.
Trader’s fee — commission paid by an Investor to a Trader for using his Strategy.
Stop out — a forced closure (liquidation) of one or all open positions (without the consent and any prior notice to a Client), generated by the server, if the account doesn’t have sufficient equity to maintain a position(s).
Company — the AMarkets company, which provides access to the Copy trading service to Clients.
1. General provisions
1.1 The Copy trading service is intended for Traders and Investors. It allows Investors to earn in the financial markets by copying the strategies of experienced Traders. Traders make a profit by earning commission (Trader’s fee) when Investors copy their Strategies.
1.2. Trader chooses the trading instrument and determines the order type in the Copy trading service independently in accordance with his trading strategy. At the same time, an Investor can adjust his capital level by setting the Loss limit and Copy ratio parameters.
1.3 When investing in a Strategy, the funds remain in the Investor’s personal account. No one except for the Investor can withdraw or transfer funds from his account. The Investor gets full control of his Investment.
1.4 All settlements and transfers in the Copy trading platform, including withdrawals and payment of the Trader’s fees, are performed by the Company.
1.5 Claims of non-fulfillment or improper fulfillment of the Company’s obligations regarding client trading operations in the Copy trading platform shall be carried out in accordance with the terms of the Customer Agreement.
1.6 The Company shall take all necessary security measures to protect the confidential information of Investors and Traders and undertakes not to transfer personal data to third parties.
2. Account opening
2.1 The Client has considered the offer independently or got independent financial advice and familiarized himself with the Copy trading service provided by the Company before using it. The Client confirms that he has read and accepts the terms of these Regulations on the Company’s website and/or in his Personal area.
2.2 Account opening is carried out in the Client’s Personal area.
2.3 Every Client registered in the Copy trading service shall be considered an Investor.
2.4 Client who has created at least one Strategy becomes a Trader. At the same time, he can also use the service as an Investor.
2.5 Every Client can open only one payment account and use it to log in to the Copy trading platform, deposit and withdraw funds, as well as receive the Trader’s fee as a percentage of the Investor’s profit.
3.1 Investor can select any Strategy to invest in from the Strategy rating after analyzing the Strategy’s performance and familiarizing himself with the Strategy description.
3.2 When making the first Investment in the selected Strategy, the Copy ratio and Loss limit parameters will be set at default values. The Investor can manually adjust these parameters.
3.3 To start investing, the Investor has to fund their payment account. The deposit amount specified by the Investor will be instantly transferred from the payment account to the Investment.
3.4 Copying will begin immediately after the Investor is subscribed to a Strategy. Positions copied from the Strategy to the Investment will be opened at current market prices.
3.5 The Copy trading service automatically selects the volume of copied positions proportionally to the size of the Investment’s equity and depending on the specified Copy ratio. The minimum trade size that can be copied to an Investment is 0.01 lot. It allows investors to copy transactions even to very small Investments, provided that they have enough free margin in their accounts.
3.6 Investor agrees to pay commission to the Trader (Trader’s fee). The amount is indicated in the Strategy description and is determined by the Trader after the Strategy is created.
3.7 The calculation of a Trader’s fee is based on the high-water mark principle. It means that the fee is paid by the Investor only if his profit constantly grows and exceeds the previous high-water mark. If the Trader’s Strategy is unprofitable at the end of a particular reporting trading period, the Investor won’t pay the Trader’s fee until profit generated in the subsequent reporting periods exceeds previous losses.
3.8 The Trader’s fee is calculated and paid automatically on the first day of every month, following the reporting one, and also when the Investment is closed or when funds are fully or partially withdrawn from the Investment.
3.9 In addition to the Trader’s fee, the Investor may also be charged a transaction commission in accordance with the Trading Terms and Conditions. For example, 0.04 lot of BRENT was copied to the Investor’s account. According to the Trading Terms and Conditions, the commission on commodities is $10 per lot. Thus, the Investor will be charged an additional: $10 * 0.04 = $0.4. If a Trader has an ECN account, then a trading commission of $2.5/lot per side will be charged for transactions with currency pairs and metals. Commission for both sides is charged immediately after the trade is placed. For example, the Investor copied 0.1 lot of XAU/USD (gold). Commission on gold is $2.5/lot per side. Thus, when opening a transaction, the Investor will be charged: ($2.5 * 0.1) * 2 = $0.5.
3.10 The Trader’s fee, commissions and swaps cannot be less than $0.01.
3.11 Investor acknowledges that transactions can be copied at the prices that are not included in the quotes flow in the client terminal and the Copy trading platform in the period between market snapshots but that are still present on the counterparty’s server.
3.12 Market orders in the Copy trading platform are executed at the prices available in the Market Depth (Order book). In the event of insufficient liquidity to execute the order of the requested volume at the first level, the order execution will occur at the next available price level until the requested volume is filled in full. When being executed at several levels of Market Depth, the price is displayed in the Investment statement as a weighted average and may not coincide with quotes, ticks and charts in the trading terminal.
4. Reporting period
4.1 The reporting trading period is determined when the Investor subscribes to the Strategy.
4.2 The reporting trading period end date is the last date of the month.
4.3 Trader’s fee specified in the Strategy description is calculated separately for each Investor and transferred automatically from the Investor’s account to the Trader’s payment account in the Copy trading service.
5.1 Trader can create several Strategies in the Copy trading service. For each Strategy, a separate account is created in the MetaTrader platform.
5.2 When creating a Strategy, the Trader has to specify the following parameters: Strategy name, leverage ratio and account type. After the Strategy is created, the Trader can add a Strategy description and indicate the Trader’s fee. The fee rate settings can be changed later, but in this case, the new settings will be applied to new Investments only.
5.3 Trader can monitor Investments in his Strategy in the “My investors” section of the Copy trading platform.
6. Account funding
6.1 The payment account in the Copy trading service is funded directly or through an internal transfer from other accounts by submitting a deposit request in the Client’s Personal area.
6.2 Once the deposit request is submitted, the corresponding amount will be debited from the Client’s wallet.
7. Funds withdrawal
7.1. To withdraw funds from the payment account in the Copy trading service, the Client must submit a withdrawal request in their Personal area.
7.2 If the Client makes a partial withdrawal from the Investment, the withdrawal amount cannot exceed the amount indicated in the “Free Margin” field and can only be transferred to the payment account. These funds can then be transferred to the wallet by submitting a request in the Client’s Personal area.
7.3. The withdrawal of funds from the Client’s payment account is carried out directly or through an internal transfer in the same currency as the Copy trading account’s base currency.
7.4. To withdraw all funds, the Client must not have open positions in the Investment.
8. Trading operations
8.1 Trader carries out trading transactions in the MetaTrader platform.
8.2 Investor maintains full control of his investment account and can manage his Investment in the appropriate section of the Copy trading platform.
8.3 When performing trading operations, the Trader must be guided by the Regulations on trading operations depending on the type of his account. These regulations are available in the Client’s Personal area.
8.4 Trader sends instructions to open, close, or modify an order within the Trader’s Strategy. Based on these instructions, signals to open, close or modify the orders are generated in the Investments in this Strategy.
8.5 When a signal to open a position is received, the system calculates and places orders for each active Investment in this Strategy. The Investment volume is calculated by the Copy trading service automatically based on the Trader/Investor equity ratio, as well as the Copy ratio parameter. For example:
1) The Trader’s equity is 1,000 USD, and the Investor’s equity is 200 USD. The Copy ratio value is set at 1 by default. The Trader’s position size is 1 lot. The position size copied to the Investor’s account will be: 1 (Trader’s position size) * (200/1000) * 1 (Copy ratio) = 0.2 lot.
2) The Trader’s equity is 3,000 USD, and the Investor’s equity is 500 USD. The Copy ratio is set at 3. The Trader’s position size is 1 lot. The position size copied to the Investor’s account will be: 0.1 (Trader’s position size) * (500/3000) * 3 (Copy ratio) = 0.05 lot.
3) The Trader’s equity is 500 USD, and the Investor’s equity is 2,000 USD. The Copy ratio value is set at 0.5. The Trader’s position size is 0.6 lot. The position size copied to the Investor’s account will be: 0.6 (Trader’s position size) * (2000/500) * 0.5 (Copy ratio) = 1.2 lots.
4) The Trader‘s equity is 3,000 USD, and the Investor’s equity is 1,000 USD. The Copy ratio value is set at 2. The Trader’s position size is 1 lot. The position size copied to the Investor’s account will be: 1 (Trader’s position size) * (1000/3000) * 2 (Copy ratio) = 0.66 lot.
8.6 The Investment may be closed by Stop Out, i.e., forced closure of open positions without consent and any prior notice to the Investor if the Investment’s Equity to margin ratio falls below the Stop Out level.
8.7 The Stop Out value for the Investment is set at 20%.
8.8 If the Loss Limit level is reached, all Investor’s positions will be closed at market prices. The financial result recorded after the Loss Limit was reached may differ from the initial value specified by the Investor.
8.9 Investor can close positions in the Investment only in the process of its liquidation. When the Investment is being closed by the Investor, all its open positions are closed at the current market prices, while positions on other Investments in this Strategy remain intact.
8.10 Trader and Investor agree that when the Strategy’s total return reaches negative 99% or less, such Strategies cease to be available for new Investments, and new trading signals shall not be copied to Investors’ accounts until the Strategy’s total return exceeds the value of negative 99%. An exception is a partial or complete closure of positions by a Trader. Such trading signals will be copied to Investors’ accounts.
8.11 If there’s not enough free margin to copy a position from the Strategy to the Investor’s account, the trading signal will be skipped and the position will not be copied.
8.12 The time for processing and copying positions depends on the connection quality between the trading platform and the server, as well as on the current market conditions. Under normal market conditions, the time for processing and copying the Client’s order is up to 3 seconds. In abnormal market conditions, the processing and copying time may increase up to 10 seconds, sometimes more.
9. Funds settlement
9.1 When an Investment is created, its drawdown is equal to zero.
9.2 At the end of each reporting trading period, the Copy trading system calculates the drawdown for the Investment. The Trader’s fee is also calculated and paid at the end of each reporting period.
9.3 If losses are recorded on the Investment at the end of the reporting period, the Investment’s drawdown increases by the loss amount.
9.4 If a profit is made on the Investment at the end of the reporting period, the Investment’s drawdown remains unchanged if its previous value was equal to zero.
9.4.1 The Investment’s drawdown is decreased by the amount of profit if there was a drawdown at the beginning of the reporting period, and the profit received on the Investment at the end of this reporting period is less than the previous drawdown value.
9.5 The Investment’s drawdown will be set equal to zero if its previous value was different from zero and the profit received is greater than or equal to this value.
9.6 The Trader’s fee won’t be paid if the Investment is in a drawdown at the end of the reporting trading period.
9.6.1 The Trader’s fee is paid if the Investment’s drawdown is equal to zero. In this case, the Trader’s fee will be calculated as follows: Trader’s fee * (Investment’s profit at the end of the reporting period minus Investment’s drawdown, if any, at the beginning of the reporting period).
10. Responsibilities of Investor and Trader
10.1 Investor and Trader guarantee that the information they provided during registration as the Company Client, as well as during the execution of all documents related to these Regulations, is correct and accurate.
10.1.1 Investor and Trader guarantee that they have read, understand and accept all the regulatory documents adopted by the Company and their terms, as well as fully understand the consequences of their actions regarding the implementation of these Regulations.
10.2 Trader must monitor the volume of open positions in the Strategy and adjust it if necessary.
10.3 Investor and Trader are not entitled to transfer passwords from the trading platform and Personal account area to third parties and undertake to ensure their safety and security. All actions and activity carried out in relation to the execution of these Regulations and/or which involved using the login and password shall be deemed as carried out by the account holders. The Company shall not bear responsibility for the unauthorized use of registration data by third parties.
10.4 Investor and Trader are not entitled to:
- assume any responsibility on behalf of the Company or make any commitments on behalf of the Company;
- use the Company’s brand name and/or trademark;
- publish or assist in any publications and announcements concerning the Company in mass media, publish or distribute any articles and letters related to the Company or assist in the writing of such articles and letters in any newspapers, magazines and other periodicals,
Internet blogs and forums, without the Company’s permission;
- offer any guarantees, make promises or announcements in relation to any payments on behalf of the Company or using the brand name and/or trademark of the Company;
- perform any other actions that may cause any damage to the Company or raise any lawsuits or claims against the Company from third parties;
- in the event that any claims/lawsuits are brought against the Company as a result of the violation of the terms and conditions of these Regulations by the Trader or Investor, the Trader or Investor undertakes to reimburse the Company for all the losses (expenses) incurred as a result of these violations.
10.5 The Trader undertakes to maintain the level of his own funds in the Strategy at no less than 2% of the total Investors’ funds. Otherwise, the Company reserves the right to optimize the margin requirements on the Trader’s and Investors’ accounts. At the same time, the Company shall strive to notify Clients of the changes via email.
11. Investment liquidation
11.1 Investor can unsubscribe from a Strategy at any time. When an Investment is being closed, all its open positions are closed at the current market prices. The Trader’s fee is calculated and paid. After that, the money is transferred from the Investment to the payment account.
11.2 If an Investor sends an instruction to unsubscribe from the Strategy, which has open positions on currently non-tradable instruments (i.e., during the weekend), these positions will be closed at the current market prices once trading is resumed.
11.3 If the Investment’s equity reaches its Loss limit level, the Investor’s account will be automatically unsubscribed from the Strategy until the Investor decides whether they want to resume copying the Strategy. If the Investor chooses to subscribe to the Strategy again, they will have to reduce the Loss limit level to zero or set a new Loss limit. If the Loss limit is reached outside the trading hours of some instruments, then positions in these instruments will be closed at the market price when trading in these instruments is resumed.
12. Strategy liquidation
12.1 The Company reserves the right to liquidate the Strategy, with prior notification of the Trader by email, if fraudulent activity is suspected on the part of the Trader.
12.2 The Company reserves the right to liquidate the Strategy at its sole discretion, without prior notice and without disclosing the reason.
12.3 The Company reserves the right to close the Strategy automatically if the total profitability indicator reaches a negative 100%.
12.4 A strategy will be automatically archived if no trading or non-trading operations have been performed in the account within 90 days,
12.4.1 A strategy will be automatically archived if there are no funds and/or open orders in the account.
12.5 If a Strategy is archived automatically, all Investments subscribed to this Strategy will be automatically closed. The remaining funds in the investments will be transferred back to the Investors’ payment accounts.
13. Duration and Amendments
13.1 These Regulations shall come into force when they have been accepted by the Client and shall be considered terminated upon termination of the Customer Agreement.
13.2 The Client acknowledges that the Company has the right to make amendments to the provisions of these Regulations at any time at its own discretion, having provided the Client with written notice about the changes at least 3 (three) calendar days in advance. Such amendments shall come into effect and are binding for the Client as of the date indicated in the written notice.
13.3 One of the following means of electronic communication shall be deemed written notice:
- notification in the Copy trading platform;
- announcements on the Company’s website.
14. Risk disclosure
14.1 The Company does not guarantee any return and profit. Past performance and/or trading success is not a guarantee of future performance or success.
14.2 The Company is not responsible for non-compliance with individual agreements and arrangements between the Investor and the Trader. Any promises regarding guaranteed rates of return and profit, as well as potential compensation payments, should be interpreted as intentionally misleading information.
14.3 Investor and Trader accept possible financial losses in the form of direct losses or lost profit caused by the following risks:
- Trader’s lack of skills and knowledge necessary for successful trading in the financial markets;
- loss of control over the Strategy by the Trader;
- involvement of third parties in the management of the Strategy;
- misunderstanding or misrepresentation of these Regulations by the Investor or the Trader;
- late submission of a complaint against the Company regarding trading operations on the Client’s trading account;
- unforeseen delays in fund transfers between accounts;
- delays in the processing of deposit/withdrawal requests or requests to close an account or an Investment;
- liquidation of a Strategy;
- technical and/or software malfunction and its consequences;
- exposure to slippage risks;
- temporary delay when copying positions to the Investor’s account due to the technical capabilities of the platform and current market conditions;
- failure to copy a position to the Investor’s account if the time gap between the transaction’s entry and exit time on the Trader’s account is less than the delay time.
14.4 The Company shall under no circumstances be liable for the cases associated with the above mentioned risks and their consequences.
15.1 All types of agreements between the Company and the Client when fulfilling the terms of these Regulations may be concluded through the mail, email, fax or any other communication channel allowing to verify that the document originates from the Company or the Client.
15.2 In the event that one or more clauses of these Regulations become invalid, null and void by any reason, it shall not affect the validity of any other clause hereof.
15.3 In the absence of a clear and unambiguous interpretation of the term in the text of these Regulations, one should be guided by: first, the definition provided in the relevant Regulatory documents posted in the Personal area and on the Company’s website (except for the Customer Agreement), second, the definition provided in the Customer Agreement.
15.4 The Company under no circumstances shall be liable for any direct, indirect, incidental or consequential loss or damage, including the loss of business, profit or reputation. The Company is not responsible for delays and malfunctions of the Copy trading service or the means of communication used by the Client to work with the Copy trading service, as well as communications between the Company’s and the Copy trading service’s servers, regardless of their causes, including, without limitation, technical failures and errors in the operation of hardware or software.
15.5 The yield curve in the Copy trading service is plotted based on the time-weighted rate of return (TWR). The TWR method breaks the account’s trading history into separate intervals based on balance transactions, i.e., whether money was added or withdrawn from the account. The return is calculated for each interval that had no balance transactions (no cash flow changes). The total return is calculated as the product of returns of all intervals.
The formula for calculating the return for one interval:
- Equity(2) – funds at the end of the interval (before replenishment)
- Equity(1) – funds at the beginning of the interval (before replenishment)
The formula for calculating the total return:
- Equity(2) – funds at the end of the interval (before replenishment)
- Equity(1) – funds at the beginning of the interval (before replenishment)
- Equity(4) – funds at the end of the next interval (before replenishment)
- Equity(3) – funds at the beginning of the next interval (before replenishment)
15.6. Client acknowledges and agrees that the profitability of the investment account may differ from the Strategy’s return since several Strategies with different rates of return can be copied to one investment account, as well as one Strategy that can show different return over different reporting periods.
15.7 The Company reserves the right to change the leverage ratio on the Trader’s account if the total Investor funds within the Strategy exceed 500,000 USD. At the same time, the Company shall strive to notify the Trader of the changes in advance through all available communication channels.
15.8 Complaints shall be accepted by the Company within 3 (three) business days of the dispute arising. The Client accepts and agrees that the Company shall have the right to reject the complaint in the event of late submission. All complaints will be considered within 5 (five) business days of receipt. In some cases, the consideration period may be extended. In the event that the Client’s claim is already being processed, the claim shall be considered closed if the Client does not respond to the Company’s official response within 5 (five) business days.
15.9 The Company reserves the right to modify the Strategy’s Copy ratio parameter on Investors’ accounts in accordance with its own risk management rules.
Date of Last Revision 20/07/2023
AMarkets LLC registered in the Cook Islands with registration number LLC14486/2023