The function itself is quite standard and known from other platforms - experienced traders trade on their accounts, and on the accounts of users who have subscribed to the trader’s strategy, similar transactions are automatically opened and closed, taking into account the difference in capital. For this, the “leader” receives a reward of 10% (if we are talking about Binance). The platform allows users to copy the strategies of up to 10 traders at the same time.
“We believe that copy trading lowers the barrier to entry into the cryptocurrency space and can help improve social interaction within the community,” said a Binance representative.
It is currently unknown which countries' citizens will have access to the copy transactions function. But, as Binance employees emphasized, the exchange is constantly reviewing its products to meet regulatory requirements in various countries. At the same time, copy trading will be available only in certain jurisdictions.
Let us remind you that at the moment, more than half of all transactions in the cryptocurrency futures market are carried out on the Binance exchange. However, the site's dominance continues to decline.