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    A Comprehensive Guide to Copy Trading Settlement (Perpetual Trading)
    bybit2024-10-27 22:47:49
    For Master TradersFor Followers

    Before we go into details on Copy Trading P&L calculation, we must first understand the mechanism of USDT Perpetual Trading. When a few orders are in the same symbols with the same direction, the orders will be merged into one position, even when they open at different timings. Hence, the system will calculate the average entry price (AEP) based on the entry price of all orders for the position and also the liquidation price.  

     

    In Copy Trading, the average entry price, liquidation price, and all other details can be viewed from the Copy Trading User Center. When a user closes a position or even partially closes the position (only exiting a certain order), the system will always use the AEP rather than the order entry price to calculate the user's final equity and available balance.

     

    For example, suppose a user opens two long orders in BTCUSDT with the same quantity, with an entry price of 50,000 USDT and 60,000 USDT, respectively. The system will amalgamate these two orders into one position and calculate a new AEP of 55,000 USDT [(50,000 + 60,000) / 2]. When the user closes the position, the system will use the AEP of 55,000 USDT to determine the user's profit or losses, final equity, and available balance, rather than the individual order entry prices of 50,000 USDT and 60,000 USDT.

     

     

    Below is an illustration of how to determine your Copy Trading transactions, P&L, and equity.

     

    Beginning of a Trade

    Master Trader B has opened a 0.035 BTCUSDT long position with an entry price of $28014.3. 
    Master Trader B can check his position from the BTCUSDT Trading Page.

     

     

    At this point of time, the realized P&L is the fee to open this position. To check the current realized P&L, Master Trader B can go to his Copy Trading page → Orders → and switch to the By Contract tab to view the Realized P&L of 0.59196480 USDT.

     


    Alternatively, he can see the asset change details from his copy trading transaction history. 

     

     

    Funding Fee Settlement

    At UTC 16:00, the position is not closed and the funding fee will be incurred. From the screenshot below, we can determine the funding rate is negative, and therefore Master Trader B received the funding fee for his long position: 3.66138011 USDT. 



    Please note that a Funding Fee will be incurred every funding interval. For more information, please visit here

    Increase Position Size

    A moment later, Master Trader B placed another two BTCUSDT long orders with a quantity of 0.031 BTC and 0.028 BTC, with order entry prices of 28618.90 USDT and 28,600.1 USDT, respectively.


    The realized fees to open 1.01279322 USDT for the new orders can be seen from the transaction history and this has been deducted from the available balance. 



    Read More:

    How to Calculate Average Entry Price

    Order Cost (USDT Contract)

    Partial Closure of the Position

    The price keeps going down and Master Trader B decided to partially close his position to limit the loss. 


    To partially close the position, Master Trader B can go back to his Perpetual Trading page.

     

    Check the Closing History

    Assuming the final closing loss is -41.31504450 USDT, he can see this record from the transaction history. The fee paid is 0.57307110 USDT and the position loss is 40.74197340 USDT.  



    Looking at the Closed P&L record from the Past Copy Trades, you may feel confused about why the closed P&L does not tally with the last transaction change. This is because the closed P&L includes the net trading and funding fee that has been realized from the last few transaction histories. On Closed P&L, the funding fee charged is proportionate according to the quantity closed to reflect the real closed P&L for that order. Below is how to derive the Closed P&L for the partially closed position. 



    Position P&L = -40.74197340 USDT

    Fee to Open = 0.59196480 USDT

    Fee to Close = 0.57307110 USDT

    Funding Fee = (-1.23960576 - 3.66138011 + 0.26874516)/0.094 X 0.035 = -1.7247704 USDT

    Closed P&L = - 40.74197340 - 0.59196480 - 0.57307110 - (-1.7247704) = - 40.1822 USDT

     

    Closure of the Entire Position

    Master Trader B decided to close his entire position. He can view his closed P&L from Past Copy Trades. 


     

     

     

     

    Important Notes: 

    — Currently, followers will be able to follow more than one Master Trader. Hence, please ensure you refer to the correct Master Trader records. 

    — As a follower, you will see the Est. Deduction is the profit share being pre-deducted from your earned profit. On the profit share settlement date, if there’s a net loss in the total P&L, the pre-deducted profit share will be sent to your Funding Account as a Refund on the settlement day. For more information, please refer to Copy Trading: Profit Sharing Explained.

     

     

    — As a Master Trader, you can see your Profit Share record from the Derivatives Account History or Unified Trading Account Transaction Log (for Master Trader upgraded to UTA).

     


    — Other common inquiries regarding Copy Trading can be found here.

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