Changes in adding funds to copy positions

CopyTrader™ is one of the most popular features on eToro; it  separates us from many other players in the Fintech industry and positions us as a true leader in social trading. To accommodate our clients’ wishes, we are constantly reviewing their feedback and changing and adding new features. Once such change we recently introduced has to do with adding funds to an existing copy.

Until recently (February 17th, 2019, to be exact), new funds added to an existing copy would only affect copied positions opened after the addition of new funds. This means that if the copied trader didn’t open new positions, the funds would not be used and would just “sit” in the copy balance.

Now, when adding new funds to an existing copy position, you have the option of using the new funds for existing trades. If you select the “Add funds to open positions” option, existing trades within the copied trader’s portfolio will be replicated at a proportional rate using the new funds. If this option is not selected, the funds will only be used for new positions.


What happens when you add more funds to a copy position

For example, Billy copied Emma with $1,000 and Emma opened 5 positions afterwards.  The same positions would be copied in Billy’s portfolio. At a later stage Billy adds another $500 to the copy position and chooses to add the new funds to open positions. At this point, the same 5 positions will be copied again, using the newly added funds. Therefore, Billy will now have a total of 10 positions in his portfolio from this copy relationship.

When Emma closes a trade, the two relevant positions will be closed in Billy’s portfolio as well.


Adding funds to CopyPortfolios™

The same method is also applied to CopyPortfolios. In the past, CopyPortfolio investors would have only seen the new funds added during a rebalancing event, which could occur once every few months. Now, the new funds will be automatically and immediately invested, with new positions opened for the CopyPortfolio components, the same way they would in a copy relationship, as detailed in the example above.

Here at eToro we are always trying to give our clients the best trading and investing experience possible. This new mechanism of adding funds to an existing copy relationship is another way to improve your trading experience and give you more control over your investments.