The Risk Factor defines the size of the trades copied on your Slaves accounts when you link a Slave to a Master to copy trades. This can be set using different methodologies depending on your preferences.
You have the choice between multiple methods to manage the trade size of your Slaves:
Auto Risk: The Slave trade size is proportional to the Master trade size and proportional to the Master account size. This method allows you to be exposed with the same level of risk between the Master and the Slave proportionally to the account size.
Multiplier: The Slave trade size is simply a multiplier applied to the Master trade size no matter the Equity, Balance or Free Margin of both Slave and Master accounts.
Fixed Lot: The Slave trade size is fixed and is defined in advance for each trade no matter the Equity, Balance or Free Margin of both Slave and Master accounts.
Fixed Leverage: The Slave trade size is fixed and is defined function of a wished leverage that the trade has to have on the Slave account. The Slave lot size does not depend of the Master trade size in that case.
Setting up the risk factor in the cockpit
To start copy trades, you must define at least one Risk Factor type and value to apply between your master and slave account. We offer different ways to define the risk factor.
Click here to learn more how to set up the risk factor in your cockpit: Account Settings
Auto Risk: The Slave trade size is proportional to the Master trade size and proportional to the Master account size. This method allows you to be exposed with the same level of risk between the Master and the Slave proportionally to the account size.
Definition of the "Auto Risk"
When using the “Auto Risk” method, the system will keep the same ratio of the trade size versus the account size between the Master and the Slave accounts.
Below is the formula used to compute the slave order size:
The “Account Size” can be defined using the equity, the balance or the free margin of both Slave and Master accounts.
The “Auto Risk” value could be any positive or negative value, the system will round up to the closest volume incremental step for the traded instrument. A negative value will reverse the order side.
If the minimum order size allowed by your broker for a specific symbol is bigger than the lot size computed, the Trade Copier copies the min trade size. In this particular case, the system always tries to copy the trade with the minimum allowed value.
Multiplier: The Slave trade size is simply a multiplier applied to the Master trade size no matter the Equity, Balance or Free Margin of both Slave and Master accounts.
Definition of the "Multiplier"
When using the “Multiplier (Notional)” or "Mutliplier (Lot)" methods, the system will multiply the master trade size by the defined value and place the corresponding order on the Slave account.
Using the "Mutliplier (Notional)" the contract size of master and slave symbols are considered and trade size will be adjusted accordingly. The multiplier will be applied to the notional amount of the master trade size. Here's how we compute it: Master lot size x Master contract size x Multiplier(Notional) / Slave contract size = Slave lot size
Using the "Mutliplier (Lot)", the contract size is not considered, so if it is different between master and slave symbols, the notional amount of the trade will not be the same. Here is how we compute it: Master lot size x Multiplier(Lot) = Slave lot size
Below the formula used to compute the slave order size:
The “Multiplier” value could be any positive or negative value, the system will round up to the closest volume incremental step for the traded instrument. A negative value will reverse the order side.
If the minimum order size allowed by your broker for a specific symbol is bigger than the lot size computed, the Trade Copier copies the min trade size. In this particular case, the system always tries to copy the trade with the minimum allowed value.
Fixed Lot / Units: The Slave trade size is fixed and is defined in advance for each trade no matter the Equity, Balance or Free Margin of both Slave and Master accounts.
Definition of the "Fixed Lots"
When using the “Fixed Lots” method, whatever the Master trade size is, each trade placed on the Slave account will use the defined value as the trade size, no matter the Equity, Balance or Free Margin of both Slave and Master accounts.
Below the formula used to compute the slave order size:
The “Fixed Lots” value could be any positive or negative value, the system will round up to the closest volume incremental step for the traded instrument. A negative value will reverse the order side.
If the minimum order size allowed by your broker for a specific symbol is bigger than the lot size computed, the Trade Copier copies the min trade size. In this particular case, the system always tries to copy the trade with the minimum allowed value.
Please note that if you are using a broker account configured with mini, micro, or standard lot, setting a "Fixed Lots" with a value of 1, will open respectively 1 mini, 1 micro, or 1 standard lot.
Definition of the "Fixed Units"
When using the “Fixed Units” method, whatever the Master trade size is, each trade placed on the Slave account will use the defined value as the trade size, no matter the Equity, Balance or Free Margin of both Slave and Master accounts.
100 000 units represent the equivalent of 1 standard lot with a notional value of 100 000 USD, so for example if you set the Fixed Units to 20 000 this is equivalent to 0.2 standard lot, you can find more examples in the next section.
The “Fixed Units” value could be any positive or negative value, the system will round up to the closest volume incremental step for the traded instrument. A negative value will reverse the order side.
If the minimum order size allowed by your broker for a specific symbol is bigger than the lot size computed, the Trade Copier copies the minimum trade size. In this particular case, the system always tries to copy the trade with the minimum allowed value.
Fixed Leverage: The Slave trade size is fixed and is defined function of a wished leverage that the trade has to have on the Slave account. The Slave lot size does not depend of the Master trade size in that case.
Definition of the "Fixed Leverage"
When using the “Fixed Leverage” method, the system will compute the order size to place on the Slave account defining the leverage that the new position has to have regarding the account size of the Slave account. The Slave trade size does not depend of the Master trade size or account size in that case.
Below the formula used to compute the slave order size:
The “Account Size” can be defined using the equity, the balance or the free margin of both Slave and Master accounts.
The “Fixed Leverage” value could be any positive or negative value, the system will round up to the closest volume incremental step for the traded instrument. A negative value will reverse the order side.
If the minimum order size allowed by your broker for a specific symbol is bigger than the lot size computed, the Trade Copier copies the min trade size. In this particular case, the system always tries to copy the trade with the minimum allowed value.
