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Copy Trading Wallet Explained

  • Updated

Introduction

A Copy Trading Wallet is a segregated margin wallet used exclusively for copy trading. Funds in this wallet are only used to copy the trades of selected Master Traders and are not mixed with your Spot or manual Perpetual Trading balances.

Each Copy Trading Wallet is linked to:

  • One Master Trader you are copying
  • A defined margin allocation
  • Independent performance tracking (ROI, P&L, drawdown)

With Fixed Multiplier Mode:

  • Position sizes are now scaled according to the selected multiplier.
  • P&L (profits and losses) in your Copy Trading Wallet will reflect the multiplier applied, meaning gains or losses are amplified proportionally.
  • Margin allocation must be sufficient to support the selected multiplier to prevent liquidation of copied positions.

This structure ensures transparency and accurate calculation of profits, losses, and profit-sharing, even with amplified exposure.


Why Flipster Uses a Separate Copy Trading Wallet

Using a separate wallet provides several benefits:

  • Clear fund segregation – prevents copy trading funds from being affected by manual trades or other products.
  • Accurate performance metrics – ROI and P&L are calculated only based on copy trading activity, including positions with multipliers.
  • Fair profit sharing – ensures the Master Trader’s profit share is calculated correctly based on actual copier profits, including multiplier-adjusted gains.
  • Better risk control – losses are limited to the margin allocated to each Copy Trading Wallet; the multiplier can increase risk exposure, so careful margin allocation is recommended.
     

How the Copy Trading Wallet Works

1. Funding the Wallet

When you start copying a Master Trader:

  • You allocate a specific amount of USDT to the Copy Trading Wallet
  • The funds are transferred from your main wallet into the Copy Trading Wallet
  • This amount becomes your initial margin balance
  • Multiplier Mode: The allocated margin is multiplied according to your chosen multiplier to determine the effective position size

2. Executing Copied Trades

  • Trades opened by the Master Trader are automatically replicated in your Copy Trading Wallet
  • Position size is adjusted proportionally based on your allocated margin and the selected multiplier
  • All trading fees, funding fees, and P&L apply directly to this wallet
  • Both maker and taker fees are deducted based on the executed order value

3. Profit and Loss Tracking

  • Realized P&L: From closed positions, multiplied according to the chosen multiplier
  • Unrealized P&L: From open positions, updated in real-time and scaled by the multiplier
  • Both are reflected in the Copy Trading Wallet balance in real time

4. Withdrawals and Unsubscribing

  • When you stop copying or withdraw funds, positions are closed (if required)
  • The remaining balance is transferred back to your main wallet
  • Profit share (if applicable) is settled before final transfer
  • Ensure your withdrawal does not affect positions leveraged by a multiplier


Wallet Balance Components

Your Copy Trading Wallet balance typically consists of:

  • Initial allocated margin
  • Realized P&L (multiplier-adjusted)
  • Unrealized P&L (multiplier-adjusted)
  • Trading fees (maker or taker fees applied per order)
  • Funding fees
  • Profit share (deducted weekly, if profitable)

This balance fluctuates based on market movements, trading activity, and the chosen multiplier.


Profit Share and the Copy Trading Wallet

If your Copy Trading Wallet is profitable:

  • A 15% profit share is deducted from net profits
  • Settlement occurs on a weekly basis
  • Only profitable periods are subject to profit sharing
  • If no profit is generated, no profit share is charged

The Copy Trading Wallet ensures profit sharing is calculated fairly and transparently, including multiplier-adjusted gains.


Risk Considerations

  • Losses are limited to the funds allocated to the Copy Trading Wallet
  • High multipliers amplify both gains and losses
  • Aggressive strategies or high leverage can lead to faster drawdowns
  • Copy Trading does not eliminate market risk
  • Always allocate only funds you are comfortable risking, especially when using multipliers


Best Practices for Managing Your Copy Trading Wallet

  • Allocate funds based on your risk tolerance
  • Avoid over-allocating to a single Master Trader
  • Monitor wallet ROI, drawdown, and trading behavior regularly
  • Rebalance or unsubscribe if performance no longer aligns with your goals
  • Consider diversifying across multiple Master Traders


Key Takeaways

  • The Copy Trading Wallet is a dedicated margin wallet for copy trading
  • It keeps funds, performance, and profit sharing separate and transparent
  • Each Master Trader you copy has an independent wallet allocation
  • Fixed Multiplier Mode allows amplified exposure, which affects position size, P&L, and risk
  • Proper wallet management helps control risk and improve long-term results
  • Understanding how the Copy Trading Wallet works—including multiplier mechanics—allows you to better manage funds, evaluate performance, and make informed decisions when participating in Copy Trading on Flipster

 

 

 

Risk Warning:
Trading in cryptocurrency involves risk and potential losses. Before trading, please make your investment decisions cautiously by considering your investment objectives, experience, and risk tolerance. You are solely responsible for your investment decisions, and Flipster is not liable for any losses you may incur. Derivatives trading, in particular, is subject to high market risk and price volatility. Please obtain independent advice where appropriate. This information should not be construed as financial or investment advice. 

 

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