• Synchronous Trading
  • How it Works

How it works

Synchronous Trading is a copy trading solution which enables investors to copy the trades of experienced traders. Investors can employ their funds without being required to be able to make prompt decisions on their own, and execute individual trading transactions in the market manually, while traders may get extra income in the form of commission reward for successful trades that investors make based on the copying of the trader’s transactions.

Investor
Registers as an investor
Selects a trader from the rankings
 
 
 
Links his/her account to a trader account
Gets financial results in proportion to the trader's yield
Trader
Registers as a trader
Executes trading transactions by using own equity (the amount in the trader account must be at least $300)
Trades are copied to a respective investor account
Receives a commission reward based on the investor's profit
Open Trading Account

How does an investor make money?

An Investor sets a specific ratio of trade-copying when linking his/her investor account to a trader account. The volume of a trading transaction on the investor account is calculated based on this ratio, and also the relation between the investor’s equity and trader’s equity.

Volume of investor's transaction = Ratio x Investor's equity Trader's equity x Volume of trader's transaction

**The equity includes own funds in the account balance..

Investor-Trader interaction

Let's say, an investor became interested in the trading track record and strategies of a certain trader, whose commission fee is 10%. The investor linked his/her investor account with the account balance of $10,000 to a respective trader account, and then set the copying ratio at 100%. The trader then opens a buy position of 0.5 lots in EUR/USD at the price of 1.12, with the amount of $5,000 in his/her trading account.

The trader closes the buy position of 0.5 lots in EUR/USD at 1.13 and locks in a profit of $500. In this case, the investor's profit is $1,000. The trader's reward of $100 (10% of the Investor's profit) is reserved in the commission retention account, and then it is distributed between the trader and investor during the settlement procedure.

Trader Equity: $5,000 Volume: 0.5 lots
Investor Equity: $10,000 Volume: 1 lot
Trader Equity: $5,500 Volume: 0.5 lots
Investor Equity: $11,000 Volume: 1 lot
Investor Profit: + $900
Investor Equity: $10,900
Commission Retention account: + $100

Settlement of commissions

Let's assume that an investor and trader have been collaborating for some time, and during that period the trader executed both profitable and loss-making trading transactions. Let's see below how the trader's and investor's amounts in equity were changing and how these amounts resulted in changes in the commission retention account.

Transactions TRADER INVESTOR BUFFER ACCOUNT
Trader’s
equity
Volume,
lots
Profit
Losses
Investor's
equity
Volume,
lots
Profit
Losses
Commission
on Profi
Buffer
Account
Balance
1 5 000,00 $ 0,5 500,00 $ 10 000,00 $ 0,5 500,00 $ 100,00 $ 100,00 $
2 5 500,00 $ 0,3 -300,00 $ 10 900,00 $ 0,3 -300,00 $ 0,00 $ 100,00 $
3 5 200,00 $ 0,8 600,00 $ 10 305,45 $ 0,8 600,00 $ 118,91 $ 218,91 $
4 5 800,00 $ 1,0 800,00 $ 11 375,64 $ 1,0 800,00 $ 156,91 $ 375,91 $
5 6 600,00 $ 1,3 1 000,00 $ 12 787,78 $ 1,3 1 000,00 $ 193,75 $ 569,57 $
6 7 600,00 $ 1,5 -700,00$ 14 531,57 $ 2,87 -1 338,43 $ 0,00 $ 569,57 $
7 7 900,00 $ 1,0 -600,00$ 13 193,14 $ 1,91 -1 147,23 $ 0,00 $ 569,57 $
8 6 300,00 $ 1,2 1 000,00$ 12 045,91 $ 2,29 1 912,05 $ 191,20 $ 760,77 $
13 766,75 $

During the settlement procedure, the investor's equity is $13,766.75, and the amount in the retention account is $760.77. The calculation is as follows:

The trader's reward is a part of the commission accrued in the retention account, which is due to the trader and calculated based on the trader's performance:

  • the profit from all transactions in the investor account: $4,527.53
  • the trader's reward (10%): $452.75

A commission refund to an investor is a part of commission accrued in the retention account, which is then refunded to a respective investor account:

  • the refund to the Investor: $308.02

The total result of the investor and trader cooperating during the accounting period:

  • equity in the investor account: $14,074.77
  • the investor's profit: $4,074.77
  • the trader's reward: $452.75
Open Trading Account

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