What is spot copy trading?
Spot copy trading is an innovative feature that enables users to copy real-time trades of experienced traders, also known as lead traders. Copy trading allows lead traders to showcase their trading skills and decision-making expertise. This exposure can enhance their professional reputation and credibility, while allowing them to unlock extra rewards from ongoing campaigns and earn a share of profits from traders who copy their trades.
How to manage spot copy trading assets?
To use spot copy trading, lead traders must transfer their assets for copy trading from Spot Wallet to Spot Copy Trading Wallet. This prevents the assets from being withdrawn, transferred out, or used for other trading operations during the copy trading process.
Please note that you cannot withdraw assets directly from the Spot Copy Trading Wallet. Youâll first have to transfer the assets back to your Spot Wallet if you wish to withdraw the assets. This can be done once the duration of your copy trading ends.
You may also add or remove assets from a running portfolio and review the asset transfer records on the history page.
How to become a lead trader on spot copy trading?
1. Log in to your Binance account and go to [Trade] - [Copy Trading].
2. Go to [Spot copy trading] and click [Become a Spot Lead Trader].
3. Set up your lead trader profile. Enter a nickname, portfolio description, and choose [Spot] as the lead trade type. Then, enter the amount to transfer from your Spot Wallet to your Lead Trader account (minimum 500 USDT, maximum 250,000 USDT). Read the User Service Agreement and check the box next to [I have read and agreed to the User Service Agreement]. Click [Confirm].
How to lead trade?
1. Log in to your lead trader account and click [Start Leading].
2. Choose one of the following actions:
- [Trade]: Initiate a new trade;
- [Close]: Close the current portfolio;
- [Adjust Balance]: Add or remove assets from a running portfolio.
Requirements and limitations for lead traders
- The asset amount for a spot copy trading portfolio must be between 500 USDT and 250,000 USDT.
- Each user can only have 1 lead trader account and 10 copy trader accounts.
- The initial number of copy traders for each lead portfolio is limited to 200.
- Binance spot copy trading products and services are only available to verified users with identity documents from the countries and regions mentioned in this FAQ.
How to place a trade?
To enhance the user experience, the spot copy trading interface is similar to the existing spot trading interface.
Search for your desired trading pair at the top. Then, enter the order details in the trade section. You can choose an order type for the copy trading portfolio by clicking the settings icon at the top right.
How to calculate ROI and PNL?
Return on Investment (ROI) reflects the profitability or efficiency of a portfolio. It is calculated similarly to the yield rate (net asset value), which prevents the changes in capital (e.g., deposits and withdrawals).
In the following formulas, "T" represents the time after a deposit/withdrawal, while "T - 1" represents the time before a deposit/withdrawal.
- ROI = (T Net Asset Value - (T - 1) Net Asset Value) /(T - 1) Net Asset Value* 100%
- A Portfolioâs Cumulative PNL = Current Wallet Balance - Initial Amount - Accumulated Deposit Amount + Accumulated Withdrawal Amount
When a portfolio is created, the initial net asset value is 1. When a deposit or withdrawal happens, the net asset value will be immediately updated.
- After a deposit:
T Net Asset Value = (T Wallet Balance - Deposit Amount) / (T - 1) Wallet Balance * (T - 1) Net Asset Value
- After a withdrawal:
T Net Asset Value = (T Wallet Balance + Withdrawal Amount) / (T - 1) Wallet Balance * (T - 1) Net Asset Value
- No deposits/withdrawals:
Net Asset Value = T Wallet Balance / (T - 1) Wallet Balance * (T - 1) Net Asset Value
Day 1 | Day 2 | Day 3 | Day 4 | |
Wallet Balance | 500 | 400 | 1,400 | 1,550 |
Portfolio PNL | 0 | -100 | 0 | +150 |
Deposit | - | - | 1,000 | - |
Withdrawal | - | - | - | - |
Net Asset Value | 1 | 0.8 | 0.8 | 0.886 |
ROI | 0% | -20% | -20% | -11.4% |
Note: ROI has its limitations. For example, when comparing two different trades, the ROI calculation doesn't factor in the time cost. ROI calculation is for reference only.
Spot copy trading rules
Buy order:
Lead Trader Order Type | Copy Trigger | Copy Trader Order Type |
Taker (Market) | Immediate | Market Limit price: Slippage cap (0.3% for BTC/USDT & ETH/USDT. 0.5% for all other pairs) |
Maker (Limit, Stop Limit) | Once the order is fully filled | Market Limit price: Slippage cap (BTC/USDT and ETH/USDT: 0.3%. Other pairs: 0.5%) |
Sell order:
Lead Trader Order Type | Copy Trigger | Copy Trader Order Type |
Taker (Market) | Immediately | Market |
Maker (Limit, Stop Limit) | Once the order is fully filled | Market |
Notes:
- Trading fee rate follows your Binance accountâs VIP level fee rate.
- BNB cannot be used for trading fee deduction.
- Referral fees are supported, trading fee rebate vouchers are not supported.
How to calculate the buy and sell order size?
[Fixed Ratio] mode
- Buy order: The copy trader's order cost is proportional to the lead traderâs order cost. However, the copy traderâs order entry price may not be exactly the same as the lead traderâs. Please note that slippage can affect the copy traderâs order price and the final order size might be lower than the lead traderâs.
- For example, the lead traderâs available balance is 1,000 USDT and they placed an order with an order cost of 500 USDT (50% of the available balance). If a copy trader uses 500 USDT to copy the portfolio, the system will use 250 USDT as the cost to place the order. However, please note that the final order size may be lower than 250 USDT due to slippage.
- Sell order: For example, a lead trader has a 1 BTCUSDT order and partially sold 20% of their order (0.2 BTC). One of their copy traders copied the trade with a total investment amount of 0.6 BTC, the system will automatically sell 20% (0.12 BTC) for the copy trader.
[Fixed Amount] mode
- Buy order: The system will place each trade using the cost per order amount the copy trader set.
- For example, a copy trader sets the cost per order amount as 20 USDT and the total investment amount is 60 USDT. The system will copy each new trade with 20 USDT as the cost. After copying 3 orders, their balance will become 0 (lower than the cost per order amount). Therefore, the copy trader wonât be able to copy the lead traderâs orders anymore as their wallet balance is insufficient.
- Sell order: For example, a lead trader has a 1 BTCUSDT order and partially sold 20% of their order (0.2 BTC). One of their copy traders copied the trade with a total investment amount of 0.6 BTC, the system will automatically sell 20% (0.12 BTC) for the copy trader.
Please note:
- If the buy order amount doesnât meet the minimum trade amount, the system will place the order using the minimum trade amount. For more details, please refer to Trading Rules.
- If the buy order amount exceeds the maximum order amount, the system will place the order using the maximum order amount. For more details, please refer to Trading Rules.
Why did copy trading fail to be implemented?
- The available balance in the copy traderâs portfolio is insufficient;
- When the lead trader uses a limit or stop-limit order to place the order, but the order hasn't been fully filled;
- When the market slippage exceeds the limit;
- The order notional value is below the symbolâs minimum notional value.
Note: When a copy traderâs portfolio balance is below the minimum copy amount and fails to copy 5 consecutive orders, it will be automatically closed. Reasons for the failure could be insufficient balance, not meeting the minimum order size, etc. The system will check and close copy portfolios that donât meet the requirements each Friday. This measure is in place to ensure that only eligible copy traders continue to remain.
Why is the final order size smaller than the cost per order amount/fixed ratio amount?
- When the Immediate-Or-Cancel (IOC) limit order was partially filled;
- In the [Fixed Amount] mode: When the available balance is below the cost per order amount, the system will use the remaining balance to place the order;
- Due to slippage, some copy traders may not be able to copy an order, the system will therefore check the dynamic maximum size for each symbol. If the number of copy traders exceeds the limit, the system will reallocate the copy trading amount of all copy traders, which may cause the final order size to be smaller than the expected.
How much profit can a lead trader share?
In Binance Spot Copy Trading, lead traders can receive:
- A 10% profit share from their copy traders; and
- A 10% commission from their copy tradersâ trading fees.
Please note:
- Weekly profit settlement cycle: 00:00:00 UTC on Mondays to 23:59:59 UTC on Sundays.
- The system will settle weekly profits when there are no open orders in the copying portfolios. Trading fee commission wonât be affected.
- After settlement, profits will be automatically distributed to the lead trader's Spot Wallet before Monday ends.
- Lead traders will receive a 10% weekly commission from their active copy portfolios before Monday ends.
- There is a cap for the weekly 10% trading fee commission. The system will take snapshots of each copy portfolioâs wallet balance at 00:00 UTC on Mondays. The cap is calculated as: min[Total trading fee * 10%]
In addition, lead traders will receive profits when:
- A copy trader stops copying their portfolio;
- The lead trader closes their portfolio;
- A copy trader withdraws profits from the copy portfolio.
How to calculate the profit to be settled?
Profit to be Settled = Max[Total Realized Profit of the Copy Portfolio * Profit Share Percentage - Shared Profit, 0]
How to calculate the profit share for a copy portfolio?
The profit amount to be settled is based on the portfolioâs PNL. The system will calculate the total profits of all copy portfolios.
For example, the investment amount for a copy portfolio is 1,000 USDT, and the copy portfolio trades multiple times a week. The profit share percentage is 10%.
Time | PNL change | Total PNL | Total Profit Share | Shared Profit | Profits to Be Settled |
Week 1 | + 200 | + 200 | 20 | 0 | 20 |
Week 2 | - 150 | + 50 | 5 | 20 | 0 |
Week 3 | + 100 | + 150 | 15 | 20 | 0 |
Week 4 | + 150 | + 300 | 30 | 20 | 10 |
- âPNL changeâ refers to the net realized profit of the week.
- âTotal PNLâ refers to the total realized profit of the copy portfolio.
- Realized profit has deducted all fees.
- âShared profitâ refers to profits that are already settled.
For week 2 and 3, as the total profit share amount is lower than the shared profit amount, therefore, the profit to be settled is zero.
What data is available to lead traders?
On the Spot Copy Trading page, lead traders can see data relevant to their portfolios:
[Lead trader stats]
[Lead trader stats]
- Copy Trading PNL: Sum of the Realized and Unrealized PNL of All Copy Traders over a Fixed Period of Time
- AUM: Lead Trader's Portfolio Investment Amount + Total Copy Trading Investment Amount
- Profit Sharing: Percentage of copy trader's profit shared with the lead trader
- Minimum Copy Amount: The minimum investment required for a copy trading portfolio
- Last Trade: Date and time of the last trade executed
[Performance]
- ROI: A lead trader's profitability over a fixed period of time, calculated using an indicative optimized portfolio value to avoid distortions caused by deposits or withdrawals
- MDD: The maximum observed loss from the peak to the trough in the asset curve over a specific period
- Sharpe Ratio: Return of a portfolio compared to its risk. The greater the Sharpe Ratio value, the more attractive the risk-adjusted return on the portfolio
- Win Rate: Number of Profitable Orders/Total Number of Orders
- Win Days: Number of days with a positive daily PNL
How to view transaction details?
At the bottom of the Spot Copy Trading page, lead traders can view their portfolio history:
[Portfolio History]
- Holdings: Assets in the portfolio
- Trade History: Actual trade record
- Profit Sharing: Profit sharing record
- Balances History: Changes in balance
[Holdings]
[Trade History]
[Profit Sharing]
[Balances History]
What are the risks associated with copy trading?
All investments carry a certain degree of risk. In copy trading, if the strategy you follow is unsuccessful, you may lose your investments. You may also face the risk of slippage during a volatile market or if the assets you trade have low liquidity. Therefore, you should take risk control and invest rationally within your financial ability.