Binance, has introduced a new feature copy trading for it's futures markets. The aim of this feature is to make trading easier by allowing users to imitate the strategies and portfolios of experienced traders (Lead Traders).
How Does This Work?
Both copy traders and lead traders can participate in this feature. When a copy trader chooses to copy the trades of a lead trader, the lead trader receives a 10% share of the profits.
Copy traders can follow up to 10 lead traders at the same time and can set their own risk preferences, such as take profit/stop loss levels, leverage, and margin configurations.
In a statement, #Binance highlighted the potential of copy trading feature to enhance engagement within its #trading community.
"We believe copy trading lowers the barriers to entry into crypto and can help improve social engagement within the community,” the exchange’s spokesperson remarked.
Regulatory Compliance:
Regarding regulatory compliance, Binance stated they review their products regularly and are committed to following regulations. They did not disclose which specific markets would have copy trading, but they emphasized their dedication to complying with the rules and regulations set by authorities.
Binance is well-known for its high trading volume, but it has also faced regulatory challenges in several countries. Some regulatory bodies have expressed concerns about the exchange's measures to prevent illegal activities.
In response, Binance has repeatedly stated its commitment to meeting legal and regulatory standards.
For example: The U.S. Securities and Exchange Commission (SEC) filed a complaint against Binance, alleging that the exchange provided unregistered securities to clients in the United States through tokens like $BNB and $BUSD
Binance has also encountered regulatory hurdles in countries like Canada and the Netherlands. As a result, they have had to limit or withdraw their services in certain regions.
But Binance highlights their commitment to regulatory compliance and believe that copy trading can enhance engagement within their trading community.
Overall, the copy trading feature offers users a simplified approach to crypto.
What are your thoughts on the copy trading feature?
Do you believe it will encourage more participation among traders?
Share your views and experiences in the comments below!👇