Binance Introduces Its Copy Trading Feature to Lower Barrier to Entry for Novice Users
On Wednesday, the largest crypto exchange, Binance, announced the launch of its copy trading feature to serve futures traders. The functionality will allow novice users to copy the trades of experienced futures traders. All Binance users are eligible to become lead traders or copy traders as long the copy trading feature is supported in their country.
According to Wednesday’s announcement, lead traders will receive a 10% commission from generated profits. These traders will also be allowed to share content regarding their trading techniques and strategies on Binance Feed so that they can interact with their followers.
As a copy trader, Binance will let you follow a maximum of ten lead traders simultaneously. Before following any experienced trader, the exchange will display their return on investment, drawdown, and PNL record within a particular timeframe. It could be 30 days, a week, or 90 days. This will help in deciding who to follow.
Binance’s Chief Marketing Officer’s Take on the Exchange’s Copy Trading Feature
After the copy trading feature launched, Binance’s Chief Marketing Officer Rachel Conlan said the company aims to introduce new products regularly to help customers achieve financial success. She added that the latest functionality benefits all parties involved in the sense that lead traders are now able to monetize their trading experience while copy traders can make money as they continue learning how to trade.
It is worth mentioning that the Binance copy trading feature is only available on select futures markets for now. Moreover, Users cannot use their futures accounts to copy trades. They must first create copy trading accounts.
Binance has adopted several risk management measures to protect copy traders. Some include:
Risk Controls: As a copy trader, you are allowed to set your own risk settings like leverage level, stop loss, and take profit.
Fixed Amount or Fixed Ratio Allocation: A copy trader does not have to put their entire account at risk. Instead, they can allocate a certain percentage of their funds for copied trades.
Countries Where the Binance Copy Trading Feature is Supported
The latest functionality for copy futures trades is available in several countries, including Egypt, Saudi Arabia, Lebanon, Libya, Algeria, Iraq, Argentina, Chile, Uruguay, and the Bahamas. As of this writing, the feature is not accessible to European users.