How FXTM Invest works
When an Investor follows a Strategy Manager, any trade opened by that Strategy Manager is automatically copied by the Investor at the same time and price. The size of the Investor’s position is based on the following ratio:
Equity of Investor / Equity of Manager
For example, if an Investor deposits $1,000 in his Investment Account and the Strategy Manager’s equity is $1,000, then the ratio is calculated as follows:
Equity of Investor / Equity of Manager
1000 / 1000 = 1
This means that when the Strategy Manager opens a position of 1 lot, the Investor’s position is opened at 1 lot at the same time. After some time, if the Investor withdraws $300 while the Strategy Manager’s equity grows to $1,500, the Investment Account’s Equity will be $1,200. The new ratio is calculated as follows:
Equity of Investor / Equity of Manager
1200 / 1500 = 0.8
If the Strategy Manager decides to open a position of 2 lots, for example, then the Investor’s position is opened at 1.6 lots (0.8 X 2).
In case an Investor activates their account while the Strategy Manager is already in a position then the Investor will have a position opened at the current Market Price.
And that’s how FXTM Invest works in a nutshell!
Visit the follow links to find out more:
Investors: https://www.irfxtm.com/investments/fxtm-invest/copy-trading
Strategy Managers: https://www.irfxtm.com/investments/fxtm-invest/become-a-strategy-manager
