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πŸ“˜ How copy trading works on $ETOR (eToro Group LTD) βš™οΈπŸ“ˆ Many new investors believe that copying a portfolio means replicating every historical trade made by the Popular Investor. But eToro does not work exactly like that, and I want to explain it clearly for anyone who is just getting started with copy trading. Let’s start with the basics: πŸ’‘ When you start copying, eToro does NOT replicate the Popular Investor’s (PI) full trade history. If the PI built a position in $ETH or $BTC through many small purchases, eToro will not repeat those trades one by one. Instead, it opens a single position that matches the total size the PI currently has in that asset. Example: if the PI holds 1.24 percent in $BNB built from many small entries, the copier receives that same 1.24 percent in one single position, no matter if the PI entered in 5, 10 or 20 layers. πŸ’‘ There is a real minimum per copied trade: 1 USD. This affects users who copy with 100 to 200 USD. If the proportional amount assigned to a trade is less than 1 USD, that trade simply will not be opened. This means very small positions, for example 0.3 percent in $SPY (SPDR S&P 500 ETF), $QQQ (Invesco QQQ) or $NSDQ100, may be skipped if the copier enters with a small amount of capital. With positions around 1.20 percent to 1.30 percent in assets like $ETH, $BTC or $VOO (Vanguard S&P 500 ETF), the minimum is normally met even with 100 USD. πŸ’‘ After the copy begins, new trades made by the PI are copied. The copier does not receive the PI’s past, but receives everything the PI does in the future. Any new purchase made by the PI, whether it is $ETH, $BTC, $TSLA (Tesla Motors, Inc.), $NVDA (NVIDIA Corporation) or an ETF like $SPY or $VOO, is copied automatically as long as the proportional amount reaches the 1 USD minimum. Example: if the PI adds 0.25 percent in $IAU (iShares Gold Trust) the copier will replicate that purchase only if their proportional amount reaches 1 USD or more. In this case, the copier would need roughly 400 USD invested to copy that increase in full. πŸ’‘ How to use this as a PI on eToro: β€’ It gives the PI a clear guideline to rebalance their portfolio in a way that works better for copiers. β€’ It allows copiers to calculate how much capital they need in order to achieve a complete copy. πŸ’‘ If you found this content useful, feel free to ask any questions πŸ˜‰πŸ“ˆ
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