Introduction
When you successfully initiate copy trading, the system automatically replicates new trades from the lead trader's account. This guide covers essential rules for opening and closing positions in Binance's copy trading feature.
Key Rules for Copy Trading
Opening Positions
| Lead Trader's Order Type | Copy Trigger Method | Copied Order Type |
|---|---|---|
| Market Order / Market Stop-Loss | Immediate Execution | IOC Limit Order (within slippage limits) |
| Limit Order / Limit Stop-Loss | After Full Order Execution | IOC Limit Order (within slippage limits) |
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Closing Positions
| Lead Trader's Order Type | Copy Trigger Method | Copied Order Type |
|---|---|---|
| Market Order / Market Stop-Loss | Immediate Execution | Market Order |
| Limit Order / Limit Stop-Loss | After Full Order Execution | Market Order |
Position Sizing Calculation Methods
Proportional Copy Mode
Opening:
- Your position size proportionally matches the lead trader's capital usage
Example: If lead trader uses 50% of $1,000 balance (=$500) to open position
- With $500 copy amount, your position would use ~$250
- Actual position might be slightly less due to execution variances
Closing:
- System closes same percentage as lead trader (e.g., 20% of position)
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Fixed Amount Mode
Opening:
- Uses your preset per-trade margin (e.g., $20/trade)
- With $60 total copy amount, maximum 3 concurrent positions ($20 each)
- Subsequent trades may execute at minimum order size if insufficient margin
Closing:
- Same percentage-based closing as Proportional Mode
Important Notes:
- Positions below minimum order size will execute at minimum size
- Positions exceeding maximum leverage will execute at maximum allowed size
Reverse Opening Transactions
Lead traders can reverse positions with these effects:
Both Parties Holding Positions:
- Your position closes when lead trader reverses
- Reverse opening portion won't be copied
Only Lead Trader Holds Position:
- Reverse opening portion will be copied normally
Common Causes of Copy Failure
- Insufficient available margin in copy project
- Partial execution of lead trader's limit/stop-limit orders
- Market slippage exceeding maximum allowed limits
- Reverse opening with directional mismatch between traders
FAQ Section
How does Binance prevent excessive slippage in copy trades?
The system uses IOC (Immediate-or-Cancel) limit orders with predefined slippage boundaries to protect against unfavorable executions.
Can I manually adjust copied position sizes?
No, position sizes are automatically calculated based on your selected copy mode (proportional or fixed amount) and available margin.
What happens if the lead trader modifies an existing order?
The copy system only reacts to fully executed orders - modified orders must complete execution before triggering copies.
Is there a delay in copy execution?
Market orders execute immediately, while limit/stop orders only trigger copies after full execution. Network conditions may cause minor delays.
How are fees handled in copy trading?
You pay standard trading fees on all executed copy trades, calculated based on your account's fee tier.
Can I pause copy trading temporarily?
Yes, you may disable copying at any time without affecting existing positions.