When traders make money while their followers lose money, the root cause isn’t the traders—it’s the exchange, because it has set the barrier to entry for lead trading far too low.
Lead traders need very thorough user education. Using lead trading tools in the first place requires a high level of expertise.
For example, when placing trades on your own, you can transfer margin at any time. But when lead trading, transferring margin while you have an open position can expose users to liquidation risk. If I add margin while I’m at a loss, I might eventually recover, while my followers get liquidated. That’s why I never transfer margin while I have open positions.
Another example: there are many trading pairs where you can freely place market orders when trading on your own. But with lead trading, liquidity and market depth issues can mean the lead trader opens a position while their followers can’t get in.
Or the lead trader may be scalping one-minute price movements. Because of poor market depth and excessive slippage, the lead trader makes money on every trade while you lose money on every trade.
From the perspective of an ordinary copy trader, you might just think the trader is terrible and has cost you a lot of money. But you have no idea how many failed copy trades, excessive slippage incidents, position-limit triggers, and other risk-control issues it takes to understand Binance’s lead trading and follower risk-control systems.
At the root of it, when traders make money while their followers lose money, it’s because the platform hasn’t properly educated its lead traders. This is a systemic issue, not something determined by one or two traders. The platform needs to provide ongoing training to larger-scale traders over the long term to gradually turn this situation around.
The real issue isn’t that the traders are so incompetent; it’s that the exchange couldn’t be bothered to do anything.
Lead traders need very thorough user education. Using lead trading tools in the first place requires a high level of expertise.
For example, when placing trades on your own, you can transfer margin at any time. But when lead trading, transferring margin while you have an open position can expose users to liquidation risk. If I add margin while I’m at a loss, I might eventually recover, while my followers get liquidated. That’s why I never transfer margin while I have open positions.
Another example: there are many trading pairs where you can freely place market orders when trading on your own. But with lead trading, liquidity and market depth issues can mean the lead trader opens a position while their followers can’t get in.
Or the lead trader may be scalping one-minute price movements. Because of poor market depth and excessive slippage, the lead trader makes money on every trade while you lose money on every trade.
From the perspective of an ordinary copy trader, you might just think the trader is terrible and has cost you a lot of money. But you have no idea how many failed copy trades, excessive slippage incidents, position-limit triggers, and other risk-control issues it takes to understand Binance’s lead trading and follower risk-control systems.
At the root of it, when traders make money while their followers lose money, it’s because the platform hasn’t properly educated its lead traders. This is a systemic issue, not something determined by one or two traders. The platform needs to provide ongoing training to larger-scale traders over the long term to gradually turn this situation around.
The real issue isn’t that the traders are so incompetent; it’s that the exchange couldn’t be bothered to do anything.