FAQ on the Social Trading platform

Step 1: Log in to the Client Profile using your login (email or phone number) and password from LiteFinance Client Profile.

Step 2: Make sure that you have verified your email address, phone number, identity, and address in your Client Profile, or else you will not be able to open a Trader’s account.

Step 3: Make a deposit of at least 300 USD to the trading account you are going to make available for copying in the section "Finance" if you haven't made it yet.

Step 4: Click on your name at the top of the page, choose "My profile" and click on "Edit." Set up your account: set your profit share, the amount of partner's commission, and the minimum investment amount for your copy traders; make the account available for copying; add some information about yourself and your trading strategy for the copying traders; invite partners to negotiate the terms of cooperation.

A trader's minimum deposit is 300 USD. Traders' accounts with smaller deposits will not be ranked in the copy trading service.

You can set the percentage of your profit to be paid to the partner who referred a Copy Trader after each rollover. This percentage is calculated separately for every rollover involving a referred Copy Trader.

For example, if you set the partner's commission at 10% and earn a profit of 100 USD from the first Copy Trader and 80 USD from the second after a rollover, and only the first Copy Trader was referred by a partner, then 10 USD will go to the partner, and your profit will be 90 USD + 80 USD.

You can view the full list of partners and the Copy Traders they attracted in the My Profile/Copy Partners section. You can also set each partner’s commission individually—just click on the partner’s nickname to edit their commission rate.

Attention! The partner's commission rate specified in the Trader account settings is automatically applied to the result of each profitable rollover if the Copy Trader has a partner.

So it's best to set the partner's commission rate to zero in your Trader account settings and set a custom rate for each partner individually. You can discuss the optimal terms of cooperation with each partner. Indicate in your "About me" section that anyone interested in cooperation should send you a direct message. They can do this by clicking the "Write a message" button on the "Info about trader" page.

As soon as you’ve made it accessible for copy trading. Your account will go up or down as you trade based on the profitability of your trading.

Commissions are transferred from a copy trader’s account to the trader’s account after rollover has been performed, i.e. once a trading interval has been completed. The commission will be paid only in case the attached copy traders have registered profits from copied trades from the moment of the latest rollover or attachment. If there’s floating loss (open-trade loss) in the Trader’s account, the amount of profit on which a commission shall be paid will be corrected in order to consider the loss change value over the trading period.
Rollover is executed automatically every 24 hours at 01:00 (time as indicated in the trading platform).

Rollover is a settlement procedure between a Trader and a Copy trader. Thus, a rollover means that a trading period has been completed and a new trading interval begins. If profits have been registered at the end of a trading period, the Trader receives his pre-set share in a Copy Trader’s profits. Conversely, a rollover is not performed if no profits have been registered.
Please note: if there’s floating loss (open-trade loss) in the Trader’s account, the amount of profit on which a commission shall be paid will be corrected in order to consider the loss change value over the trading period.

Rollover is executed automatically every 24 hours at 01:00 (time indicated on the trading platform).

Each time a copy trader detaches their account from the trader or withdraws money from their account, a rollover is performed automatically in the copy trader’s account.

A rollover does not close any trades. This procedure is meant for settling accounts between a Trader and a Copy Trader regarding the profits made from closed trades, in the amount of the profit share pre-set by the Trader.

Liquidation of a trader’s account means that the account is no longer used as a trader’s account and all copy traders’ accounts are detached from such an account. Liquidation of a trader’s account is obligatorily preceded by a rollover. To initiate liquidation, turn off the toggle "Make available for copy trading" in the Settings of the Trader’s Profile.

Open trades will be closed at the price valid at the moment of deleting the account.

Here's an example.

Let's assume a trader has increased their equity through trading from $500 to $550, registering 10% profitability. The trader has opened new trades and decided to withdraw the profit of $50. The aggregate equity amount becomes equal to $500, and the profitability remains at 10%.

The new trades turned out to be loss-making and the account equity dropped to $450. One would think the profitability should equal 0%, but, as you may have noted, the account equity dropped 10.1%, not 10%, following the opening of the new trades.

((550/500*450/500)-1)*100%=-1%

As a result, the ranking shows the profitability at -1%. The more equity changes due to balance operations, the more profitability will change in the ranking after another balance operation.

1. Top up the account you are going to copy trades to via the "Finance" section .

2. Move to the Traders section. Click on the nickname of the trader that interests you.

3. To the right of the profitability chart that opens, set the parameters for your account: select one of the 4 copy types; set the equity level at which copying of new trades shall be suspended, specify an amount to copy and click on "Copy". More details on copy settings and copy stop terms are available further below.

The Social Trading platform offers 4 types of transaction copy. The Trader copier selects the type and sets the copy settings when your account is linked to the Trader account. The Trader copier must carefully address the issue of selecting the type of copy, estimate their funds and the trading strategy of the Trader account from which they wish to copy the transaction.

If the amount of your funds is much different from the amount of the Trader’s equity and your experience is not enough for assessing the Trader’s strategy, use the "Copying a fixed share of my equity" option to minimize trading risks.

For more details and illustrations, please refer to the section "Four copy types" on the page "How Copy Trading works".

We also recommend reviewing the Trader account description before choosing your copy type and setting your parameters. If there isn’t one, you can always contact your Trader directly by sending a private message. To do this, click the "Write a message" button on the "Info about trader" page.

Withdrawing funds from copying account automatically launches rollover. At the same time, the Trader’s Commission will be deducted from the money to be withdrawn. The following formula is applied:

Available funds= Equity-Credit-Margin-Commission,

Where commission means a payment for closed copied trades currently due to the trader (i.e. prospective commission that would be deducted from the account if rollover was performed).

To limit potential losses when copying trades, a Copy-Trader can preset Copy stop terms in their account currency. If the loss/profit from the initial copy amount reaches this value, copy trading will stop in this account.

For example, you have set the following copy trading parameters:

• Amount for copy trading: 1,000 USD
• Maximum loss: -100 USD

That means that copy trading will stop only when you have lost 100 USD of the amount for copy trading, and your deposit has become equal to 900 USD (1,000 USD - 100 USD).

Let’s say you started copy trading and earned 300 USD. You now have 1,300 USD in your account.

Then, you've lost 100 USD. Copy trading will not stop because you still have 1,200 USD in your account (1,000 USD + 300 USD - 100 USD).

For copy trading to stop, your account balance must drop by 100 USD below the initially allocated copy-trading amount. This means that considering your profit, you must lose: 100 + 300 = 400 USD.

The equity amount in the Copy Trader’s account is compared with the Copy stop level every 15 seconds.

Also, you can limit your risks by choosing a specific copy type, for example, Copying a predefined % of the Trader’s each trade or Copying a fixed share of your equity. Having pre-set a small percentage of copy trade volumes or using a fixed share of your equity, you can control your risks, but you reduce your prospective profits respectively, at the same time.

Yes. You can change the copy stop conditions, copying type and account settings at any time.

It’s worth considering the fact that changes don’t apply to open trades and will apply to all future copy-trades.

You can copy as many traders as you wish. Wise distribution of funds will allow you to reach the highest copy trading efficiency. You can customize copy trading settings for each particular trader.

For some of the following reasons:

- There are not enough free funds on the account of the Copying Trader to open a new position;

- Copying is disabled for the profile of this Copying Trader or the Trader whose trades they are copying for a sole cause.

Yes, a trader can change their profit share size at any time, but this change will only apply to new copy traders who have joined in after a new profit percentage is set. All current copy traders will work under the conditions valid at the moment of their attachment.

The particularity of this copy-trading type is that the volume of a copied trade is rounded to the minimum lot of 0.01 if it is less than that value. But if the Copy-trader doesn't have enough equity in their account and their equity amount is significantly different from the Trader's, the rounding can interfere with the copy volumes ratios and quickly result in Stop Out.

If the "Copy opened orders" option is enabled, the Trader's and the Copy-Trader's equities might change disproportionately for the reason mentioned above.

The same goes for a situation where the Trader tops up their account, but Copy-Trading accounts are not topped up.

To calculate the Trader's commission, we estimate the fixed profit accumulated since the latest rollover and the floating loss value at the moment of a rollover. When the Trader closes profitable trades, they do not gain a commission until the total fixed profit exceeds the unrecorded loss. In that case, the Trader will earn a commission on the difference between the profit and unrecorded loss, and they don't need to close trades for that. It's enough to have open trades whose floating loss reduces at the moment of a rollover to such an extent that the condition mentioned above is fulfilled.

Attention! The fixed profit amount reduces by the amount on which a commission has already been paid during the previous rollover.

An example: a Trader has fixed $100 of profit since the beginning of copying. At the time of the first rollover, it turned out that the difference between this value and the floating loss is $30. The Trader got his commission from the $30 while the amount of the fixed profit from the beginning of copying was reduced by this amount to $70. By the beginning of the next rollover, the Trader had not closed any new trades, but the floating loss decreased due to market movement, and when compared with the amount of profit, which was now $70, showed a difference of $20. The Trader received a commission from the $20, and the amount of fixed profit from the beginning of copying was again reduced by this amount and now was $50.

The Trader then closed a profitable trade and the amount of the fixed profit from the beginning of copying was increased by $10. When the next rollover comes, the floating loss will be compared to a profit of 50 + 10 = $60, and the commission will be paid from the difference between these values.

Profitability is computed using the following formula:

P=((E_end_1/E_begin_1)*(E_end_2/E_begin_2)*...*(E_end_N/E_begin_N)-1)*100%, where

P means "profitability in %"

E_begin_X means "funds available at the beginning of the period X".

E_end_X means "funds available at the end of the period X".

N means "the latest settlement period".

Rollover marks the end of a trading period and the beginning of another trading period. The formula computes profitability in % once an account is ranked in the traders' ranking.

A trader's profitability depends only on the results of their trading operations. Deposits and withdrawals have no influence on account profitability rates. This has to be taken into consideration when an account balance changes due to balance operations.

Here's an example.

Let's assume a deposit of $500 is made into a Trader account. Some time later, the deposit is reduced to $100 following unsuccessful trades, which is 80% less. This change is reflected in the ranking.

To return the profitability rate to a break-even level, the trader needs to increase the capital fivefold (from $100 to $500) by showing positive performance.

The trader decides to top up the account to exit the drawdown in a more comfortable way and pays $50. The aggregate deposit becomes equal to $150. However, the account profitability remains unchanged at -80%.

Let's assume then that the account deposit becomes equal to the initial one, $500, as a result of profitable transactions carried out in the account.

Profitability = ((100/500*500/150)-1)*100 = -33.33%

Note that this fivefold deposit increase didn't make the account exit the drawdown: since the trader has made the additional deposit of $50, the aggregate amount of $150 was to have been increased fivefold. It means that in order to exit the drawdown, the trader needs to increase the account deposit to $750,

.e. a trading profit of $250 is still required for exiting the drawdown.

Profitability = ((100/500*750/150)-1)*100 = 0%

The maximum deposit utilization rate is the highest possible value of an account’s deposit utilization rate since its appearance in the Traders' Ranking.

Deposit utilization rate is a percentage of an account’s equity used as a margin for opened orders.

It’s calculated using the formula :

Margin / Equity * 100(%), where:

Margin – a deposit amount required to open a position;

Equity – a current account’s equity.

Maximal relative drawdown shows a percentage of losses in an account.

It’s calculated using the formula :

Max ((MaximalPeak - NextMinimalPeak) / (MaximalPeak + 100) * 100) (%), where:

Max — the highest relative drawdown value;

MaximalPeak — the upper extremum value corresponding to Max in the profitability chart;

NextMinimalPeak — the lower extremum value following MaximalPeak in the profitability chart.

Example of relative drawdown calculation for the chart above:

Let’s estimate the extremums of the profitability chart ("H" for the highest and “L" for the lowest)

H1 = 80%, L1= 50%;

H2 = 90%, L2 = 35%;

H3 = 135%, L3 = 40%;

H4= 195%, L4 = 65%.

Relative drawdown values are calculated as follows:

PercentDrawDown1 = (H1 - L1) / (H1 + 100) * 100 = (80 - 50) / (80 + 100) * 100 = 16.67%

PercentDrawDown2 = (H2 - L2) / (H2 + 100) * 100 = (90 - 35) / (90 + 100) * 100 = 28.95%

PercentDrawDown3 = (H3 - L3) / (H3 + 100) * 100 = (135 - 40) / (135 + 100) * 100 = 40.43%

PercentDrawDown4 = (H4 - L4) / (H4 + 100) * 100 = (195 - 65) / (195 + 100) * 100 = 44.07%

MaxRelativeDrawdown = 44.07%

During the first month of trading, a Trader account is considered new and has 6 risk points. Copy Traders are therefore warned that this account is categorized as high risk. After this period ends, the Account Risk Factor is recalculated hourly according to the rules described below.

Trader’s accounts are classified on the basis of Risk Ratio:

Risk 1-3 (marked in green) – the Trader account follows a low-risk strategy. This usually means no trading during news releases (periods of high volatility) and no large positions relative to the available funds on the account.

Risk 4-7 (marked in yellow) – the Trader account allows for a moderate drawdown and deposit load and uses medium trade volumes.

Risk 7-10 (marked in red) – usually this is a new Trader’s account using aggressive trading strategy, high deposit load and often trading in news time. Often a trader will not follow a certain trading strategy.

The risk level of a Trader account is based on its trading history and is calculated automatically according to the following parameters (the influence of each parameter is indicated in brackets):

1. 1. Maximal relative drawdown (weight factor 0.5)
2. 2. Maximum deposit utilization rate (weight factor 0.3)
3. 3. Leverage (weight factor 0.1)
4. 4. Account lifespan (weight factor 0.1)

Each of the parameters above has its own scale from 1 to 10 points and its own weight in the final risk estimation. The total Risk ratio is measured in values rounded to the nearest whole number.

Thus, the total Risk ratio is determined by summing up points for each parameter multiplied by its own weight factor.

Risk = Points of Maximal relative drawdown * 0.5 + Points of Maximal deposit utilization rate * 0.3 + Points of Leverage * 0.1 + Points of Account lifespan * 0.1

1. Maximal relative drawdown (weight factor 0,5)

2. Maximum deposit utilization rate (weight factor 0,3)

3. Leverage (weight factor 0,1)

4. Account lifespan (weight factor 0,1)

Example:

Let’s say an account had the following parameters and points (without considering weight factors):

Maximal relative drawdown: 22.5% = 5 points;

Maximum deposit utilization rate: 11.32% = 3 points;

Leverage: 1:400 = 10 points;

Account lifespan: 84 days = 10 points;

So, the Risk ratio with weight factors considered shall be calculated as follows:

Risk = 5 * 0.5 + 3 * 0.3 + 10 * 0.1 + 10 * 0.1 = 5.4 ≈ 5