Lead traders: Spot lead trading guidelines
What's spot copy trading?
OKX spot copy trading is a new social investment approach and an important portfolio management tool. We've identified top-performing spot traders whose trades you can automatically duplicate. You'll no longer need to constantly check the market to find the best opportunities. Spot copy trading has no leverage or liquidations, is lower risk, and a more stable investment choice for traders. We offer a wide range of cryptocurrencies to help you benefit from some of the best market depth in the industry. Copy trading includes a mechanism that provides lead traders with up to 13% profit-sharing.
How is spot lead trading different from regular spot trading?
Assets you buy through spot lead trading will be frozen when you buy it. This is to make sure lead traders don't sell or transfer the assets, or carry out another action that could impact the lead trade. The assets will be unfrozen when you sell. Frozen assets can't be used as margin, transferred, withdrawn, or used for purposes outside of the lead trade. You can check which assets are frozen under My assets.
Unlike regular spot assets, spot lead crypto currently can't be sold by going to Trade > Spot > Sell. You can sell it in one of the following places:
Trade > Lead trades > All lead trades or Spot lead trades
Copy trading > My lead trades > Ongoing
Currently, spot lead trading doesn't allow for setting a custom sell amount. You can either sell all the crypto from an individual order or all the crypto under one trading pair. In contrast, regular copy trading orders support selling a custom amount.
How do I start or stop leading spot lead trades?
How to become a spot lead trader？
Requirements: have completed full identity verification.
How to apply: you can apply through the banner on the copy trading page, or directly apply to become a spot lead trader here.
The banner on the copy trading page is one of the channels for you to be a lead trader
Submit your personal info: provide your contact method, social media account, and bio. You'll receive the results of your application in 3-5 working days.
Verifying your identity is compulsory in order to be a lead trade
Complete your settings: we'll notify you if your application is approved, after which you can set your lead trade crypto and start leading trades.
Note: that to carry out spot lead trades, you need to use either margin-free mode or single-currency margin mode.
Set up your spot trade crypto
If your application is disapproved, you can contact support or your OXK rep for more details. You can then try to resubmit your application.
Completion of spot lead trading setup allows you to start leading in the trade
How to stop leading spot trades？
Go to My lead trades > Lead trade settings > Stop leading trades
Select Settings to end leading trades
Select your reason and submit your request. We'll contact you with the results within 3 days.
Make sure to sell all spot lead trade assets and cancel any open spot lead trade orders before requesting to stop leading trades.
Select stop leading trades at the lead trade settings
What's the profit-sharing mechanism for spot lead trading?
OKX copy trading uses a profit-sharing mechanism, allowing lead traders to profit from any gains made by copy traders. The maximum profit-sharing ratio is 13%.
OXK profit-sharing rules
If a spot copy trade makes a profit when the crypto is sold, our system will automatically deduct the trading fees, and then withhold the profit-sharing amount. On the settlement day, we'll calculate the total PnL over the whole settlement period. The actual profit-sharing amount will be sent to the lead trader's funding account. If the withholding amount is greater than the actual profit-sharing amount, the difference will be returned to the copy trader's trading account.
Profit-sharing will only be settled if a copy trader isn't copying any ongoing trades from a lead trader. Otherwise, profit-sharing will be delayed until the first settlement date when the copy trader isn't copying any ongoing spot trades.
The OKX settlement cycle of the copy trading system is weekly from every Monday 00:00 (UTC+8) to Sunday 23:59:59 (UTC+8). Profit sharing will be calculated every Monday at 00:00 (UTC+8).
Profit-sharing levels
OKX spot profit-sharing levels are based on the average AUM of the lead trader's spot lead trades from the last 90 days. If a lead trader's level is higher, they can set a higher profit-sharing ratio.If your profit-sharing level increases, your maximum profit-sharing ratio will increase, but your current profit-sharing setting won't change. You'll receive a notification and can adjust your profit-sharing ratio if you want. If your profit-sharing level decreases, your maximum profit-sharing ratio will decrease. If your current profit-sharing ratio is higher than the new limit, your ratio will automatically decrease.
Level | 90-day average AUM (X) | Maximum ratio |
|---|---|---|
1 | 0 ≤ X < 100,000 USDT | 8% |
2 | 100,000 ≤ X < 500,000 USDT | 10% |
3 | 500,000 ≤ X < 1,000,000 USDT | 12% |
4 | ≥ 1,000,000 USDT | 13% |
Note:
AUM = Total investment amount of all copy traders
Copy trader investment amount = Trader's max total copy trade amount or USDT equity in trading account (whichever is less)
90-day average AUM = Lead trader AUM over last 90 days / 90
Profit-sharing example
A lead trader creates spot lead trades for BTC/USDT, ETH/USDT, and ETC/UDST. Their profit-sharing level is Level 2, and their profit-sharing ratio is 10%. Below is an example of how their copy trader's profit-sharing is calculated.
Date | Trading history | Profit and loss after fees | Witholding amount (10% of profits) |
|---|---|---|---|
April 17 (Mon) | BTC/USDT | +200 USDT | 20 USDT |
April 18 (Tue) | BTC/USDT | -50 USDT | 0 |
April 19 (Wed) | No new buy orders | N/A | N/A |
April 20 (Thur) | ETC/USDT | -500 USDT | 0 |
April 21 (Fri) | No new buy orders | N/A | N/A |
April 22 (Sat) | ETC/USDT | +500 USDT | 50 USDT |
April 23 (Sun) | BTC/USDT | +100 USDT | 10 USDT |
New settlement period starts | |||
April 24 (Mon) | ETH/USDT | +300 USDT | 30 USDT |
April 25 (Tue) | BTC/USDT | -1,000 USDT | 0 |
Settlement period (April 17 - 23) | |||
Net PnL in settlement period: 200 - 50 + 300 - 500 + 500 + 100 = 550 USDT |
After selling copy trade crypto, the copy trader's total profit is 550 USDT. With a 10% profit-sharing ratio, the lead trader will take 55 USDT of this. Since 110 USDT has been put aside as a withholding amount, then the profit-sharing is settled, 55 USDT will be sent to the lead trader's funding account , and 55 USDT will be sent to the copy trader's trading account.
Note: for profit-sharing to take place, the copy trader must not copy any ongoing spot trades from the lead trader. Otherwise, profit-sharing will be delayed until the next settlement date.
What standards are there for lead traders?
What are the lead trader standards？
Traders who closely align with our trader standards will have more trading benefits. These include more copy trader traffic, a higher copy trader limit, and priority to participate in official promotions. Note that standards will continue to update as the copy trading feature develops.
What kind of traders does OKX encourage?
Traders who meet the following standards will receive more exposure, receive our support at promotional events, and get help with brand promotion:
Experienced: Lead traders who've led trades on OKX for a long time under different market conditions and brought profit to their copy traders.
Authentic: Lead traders who use large amounts of their actual funds in their lead trades and take on the same risk as the traders copying them.
Stable: Lead traders who have a clear strategy for risk control and stopping losses. They take responsibility for users, have a low max drawdown, set a reasonable stop loss, and try to ensure a positive PnL for copy traders.
Trustworthy: Lead traders whose affiliate traders trust and are willing to copy them. They can bring new traders to OKX.
Communicative: Lead traders who actively guide and educate copy traders, helping them make reasonable copy trades and balance returns and risks. As a result, copy traders are willing to copy them long-term.
What kind of trader behavior is unwelcome?
Traders who meet the following behavior may have their traffic limited or have their lead trader position revoked:
Lead traders who fake their name, use someone else's verified account, or buy another person's account.
Lead traders who falsify account data or create many different lead trade accounts.
Lead traders engage in hedging transactions to influence data while making sure they don't make a loss.
Lead traders who hold onto unprofitable trades and don't set stop losses, resulting in copy traders making losses and having their positions liquidated.
Lead traders who open trades with low funds, make random or extreme trades, don't take responsibility for their copy traders, and change accounts if their account data becomes poor.
Lead traders who replicate the trades and strategies of other lead traders, or use their nickname or profile picture.
Lead traders who direct traffic to external platforms or promote their social media account
What are our standards for placement of traders in our rankings?
Encourage authentic trades: Lead traders who invest more funds into their lead trades will place higher in the rankings
Encourage long-term, stable trades: Lead traders who have led trades for more time will place higher in the rankings.
What should new lead traders be aware of?
Make sure to take risk-control measures, stop losses, and avoid holding unprofitable trades
Create a high-quality bio to help establish your trading identity. Here is a high-quality trading bio example:
Experience: Master's in Financial Engineering & 6y finance experience. Specialize in futures & options. Traded crypto since 2015 and experienced many bear & bull markets.135%+ PnL in stocks. Increased crypto from 1k to 50k USDT.
Trading style: Mostly trade mainstream crypto, like BTC & ETH. Mostly day trading & medium-term. Suggest copying >1 month with a maximum total amount of 500+ USDT. Avoid high leverage.