> For the complete documentation index, see [llms.txt](https://docs.coinlocally.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.coinlocally.com/perpetual-contracts/functions/futures-copy/futures-copy-trading-rules.md).

# Futures Copy Trading Rules

Futures Copy Trading enables users to replicate the trading activities of experienced traders in real-time automatically. This guide outlines how copy trading works, how positions are opened and closed, how quantities are calculated, and reasons why copying might fail.

### ⚙️ **Supported Contract Types**

* **USDT-margined contracts**
* **Coin-margined contracts**

### 🧾 **Order Copying Logic**

#### **Opening Positions**

| **Leader's Order Type**                    | **Trigger Method**        | **Follower's Copy Order**             |
| ------------------------------------------ | ------------------------- | ------------------------------------- |
| Market Order / Market TP & SL Order        | Immediate                 | Market order                          |
| IOC Limit Order (with max price deviation) | Immediate after execution | Limit order with calculated deviation |
| Limit Order / Limit TP & SL Order          | After full execution      | Same type as leader’s order           |

#### **Closing Positions**

| **Leader's Order Type**             | **Trigger Method**   | **Follower's Copy Order** |
| ----------------------------------- | -------------------- | ------------------------- |
| Market Order / Market TP & SL Order | Immediate            | Market order              |
| Limit Order / Limit TP & SL Order   | After full execution | Market order              |

> **Note:** Copy trades follow the **same fee structure** as regular contract trades, calculated in either **USDT** or **the base coin**, depending on the contract type.

### 📐 **Copy Quantity Calculation**

#### **1. Fixed Ratio Copying**

* **OpeningPosition Formula:**

$$
\text{Follower Lots} = \frac{\text{Follower Margin}}{\text{Leader Margin}} \times \text{Leader Lots}
$$

* **With Custom Leverage:**

$$
\text{Follower Lots} = \frac{\text{Follower Margin}}{\text{Leader Margin}} \times \text{Leader Lots} \times \frac{\text{Follower Leverage}}{\text{Leader Leverage}}
$$

* **Closing Position Formula:**

$$
\text{Follower Close Qty} = \frac{\text{Leader Close Qty}}{\text{Leader Position Size}} \times \text{Follower Position Size}
$$

* If not a whole number, round **up to the nearest whole number**.

> Example: If a leader closes 0.2 BTC out of a 1 BTC position (20%), the follower closes **20%** of their position.

#### **2. Fixed Amount Copying**

* Each order uses a **fixed amount of margin**.
  * Example: If set to **$20 per order** with a total cap of **$60**, the user can open up to **3 positions**.
* **Closing Formula:** Same as in fixed ratio mode (percentage-based).

### 🔄 **Reverse Positions**

* If a lead trader **closes a position and opens a reverse position**, the follower’s system will:
  1. **Close the current position**
  2. **Open a new position in the opposite direction**

### 🚫 **Copy Order Failure: Possible Reasons**

| **Reason**                                                                         |
| ---------------------------------------------------------------------------------- |
| Insufficient available margin in follower’s copy trading project                   |
| Leader used a **limit/IOC order** that was **not fully executed**                  |
| Partial fills on IOC orders — system does **not copy partially filled IOC trades** |
| Market **slippage exceeds max deviation threshold**                                |
| Order size is **below the platform’s minimum** or **above the maximum**            |
| Follower’s margin mode **conflicts with the leader’s**                             |
| **Exceeded maximum number of positions** or **open orders allowed**                |
| Position **exceeds leverage-based maximum allowed size**                           |

***

### ❗ **Why Is My Copied Order Smaller Than Expected?**

* The order was a **partial fill** of an IOC limit order from the leader.
* This results in smaller-than-expected quantities for the follower, especially in **fixed-amount or fixed-ratio** modes.

***

### ✅ **Best Practices for Followers**

* Ensure a **sufficient margin** is always available.
* **Monitor your copy project** regularly, especially in **fixed amount mode**, where the leader's actions can increase your risk.
* Keep track of the **leader’s leverage and margin mode** to avoid copy failure.
* Use **stable margin and position limits** to maintain sync with the lead trader.