IPG Interpublic Group of Companies Inc

EDIT: Presently this is no longer true as etoro has added an automatic synchronization mechanism to copies 𝗛𝗼𝘄 𝗱𝗼𝗲𝘀 𝗺𝘆 𝗱𝗲𝗽𝗼𝘀𝗶𝘁𝘀 𝗮𝗳𝗳𝗲𝗰𝘁 𝘆𝗼𝘂𝗿 𝗰𝗼𝗽𝘆? I'll have this post pinned on my profile so you can always have an easy reference. Every once in a while I will be adding extra funds to my account, and it's important that you know how this affects your copy. When I add funds to my account, I have the option to open a new position without selling a previous one. As a copier, if you don't match my deposit with additional funds, you won't be able to copy that specific trade due to insufficient available balance. And that will lead to my returns going forward being different from yours (this does not mean they will be better than yours). You as a copier have 4 options after I make a deposit: ◾𝗔𝗱𝗱 𝗮𝗱𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗳𝘂𝗻𝗱𝘀 𝘁𝗼 𝗺𝗮𝘁𝗰𝗵 𝗺𝘆 𝗱𝗲𝗽𝗼𝘀𝗶𝘁 𝗯𝗲𝗳𝗼𝗿𝗲 𝗜 𝗱𝗼 𝗮𝗻𝘆 𝘁𝗿𝗮𝗱𝗲𝘀 (𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗰𝗼𝗽𝘆𝗶𝗻𝗴 𝗼𝗽𝗲𝗻 𝘁𝗿𝗮𝗱𝗲𝘀) ◾ 𝗔𝗱𝗱 𝗮𝗱𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗳𝘂𝗻𝗱𝘀 𝗮𝘁 𝗮𝗻𝘆 𝗽𝗼𝗶𝗻𝘁 𝗮𝗳𝘁𝗲𝗿 𝗜 𝗺𝗮𝗸𝗲 𝘁𝗵𝗲 𝗱𝗲𝗽𝗼𝘀𝗶𝘁 (𝗰𝗼𝗽𝘆𝗶𝗻𝗴 𝗼𝗽𝗲𝗻 𝘁𝗿𝗮𝗱𝗲𝘀) ◾𝗗𝗼 𝗻𝗼𝘁𝗵𝗶𝗻𝗴 ◾𝗖𝗮𝗻𝗰𝗲𝗹 𝘁𝗵𝗲 𝗰𝗼𝗽𝘆 𝗮𝗻𝗱 𝗿𝗲 𝘀𝘁𝗮𝗿𝘁 𝗶𝘁 I'll explain this options in more detail: 𝗔𝗱𝗱 𝗮𝗱𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗳𝘂𝗻𝗱𝘀 𝘁𝗼 𝗺𝗮𝘁𝗰𝗵 𝗺𝘆 𝗱𝗲𝗽𝗼𝘀𝗶𝘁 𝗯𝗲𝗳𝗼𝗿𝗲 𝗜 𝗱𝗼 𝗮𝗻𝘆 𝘁𝗿𝗮𝗱𝗲𝘀 (𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗰𝗼𝗽𝘆𝗶𝗻𝗴 𝗼𝗽𝗲𝗻 𝘁𝗿𝗮𝗱𝗲𝘀) Suppose you currently have $1000 in the copy, and if I add 20% to my account, you could match me by adding $200 without copying open trades. By doing this, whenever I open a new position, you will also open the same positions in proportion to mine. This will result in the best synchronization between our portfolios, providing us with the most similar results. 𝗔𝗱𝗱 𝗮𝗱𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗳𝘂𝗻𝗱𝘀 𝗮𝘁 𝗮𝗻𝘆 𝗽𝗼𝗶𝗻𝘁 𝗮𝗳𝘁𝗲𝗿 𝗜 𝗺𝗮𝗸𝗲 𝘁𝗵𝗲 𝗱𝗲𝗽𝗼𝘀𝗶𝘁 (𝗰𝗼𝗽𝘆𝗶𝗻𝗴 𝗼𝗽𝗲𝗻 𝘁𝗿𝗮𝗱𝗲𝘀) Now lets say that you decided to make an additional deposit, but I have already opened new position with my deposit, in that case you should choose to copy the open trades, otherwise your new deposit will be held as balance and wont be utilized until I make a new deposit or I decide to sell and then buy a new stock. In this case as I would already have purchased the new stocks you wont be opening those position at the same proportion as I did but instead as a proportion to the existing portfolio at the time, this will lead to a larger difference between your portfolio and mine than in the previous case, but it shouldn't be anything to worry about. 𝗗𝗼 𝗻𝗼𝘁𝗵𝗶𝗻𝗴 This option will lead to the largest difference between your portfolio and mine, but I don't think thats a bad thing. If you decide not to take any action, I will be opening new positions while you maintain your portfolio as it was before I made the deposit. As a result, our returns will differ – if my new positions outperform the old ones, you will have a smaller return, and if they underperform, you will have greater returns. However, over time, as I start closing old positions or as you make additional deposits, our portfolios should gradually converge, and our returns will become more similar in the long run. 𝗖𝗮𝗻𝗰𝗲𝗹 𝘁𝗵𝗲 𝗰𝗼𝗽𝘆 𝗮𝗻𝗱 𝗿𝗲 𝘀𝘁𝗮𝗿𝘁 𝗶𝘁 Of all the possible option this is the one I like the least, and I would only recommend you do it, if you have chosen to do nothing for a few deposits in a row or the deposit was really big (lets say over 20% of the account balance) and also wont be adding any additional funds to the copy over the next few months. Choosing this option will maximize the synchronization of our portfolios, but it will impact your returns. This is because it involves selling assets and then repurchasing them, incurring additional fees, which would result in a loss of approximately 0.4% to 0.6%. Additionally, if you close the copy at a profit, you will need to consider taxes on that income. I hope this helps all of you better understand how deposits work and how it affects your copy. If you have any questions feel free to leave them at the comments and I will do my best to answer them. Hope you have a nice day!