Risk warning: Trading is risky. Your capital is at risk. Exinity Limited is regulated by FSC (Mauritius).
Risk warning: Trading is risky. Your capital is at risk. Exinity Limited is regulated by FSC (Mauritius).

How FXTM Invest works FXTM Invest

Forex Educational Video Series

Author: Andreas Thalassinos (BSc, MSc, MSTA, CFTe, MFTA), Head of Education at FXTM.

How FXTM Invest works

When an Investor follows a Strategy Manager, any trade opened by that Strategy Manager is automatically copied by the Investor at the same time and price. The size of the Investor’s position is based on the following ratio:

Equity of Investor / Equity of Manager

For example, if an Investor deposits $1,000 in his Investment Account and the Strategy Manager’s equity is $1,000, then the ratio is calculated as follows:

Equity of Investor / Equity of Manager

1000 / 1000 = 1

This means that when the Strategy Manager opens a position of 1 lot, the Investor’s position is opened at 1 lot at the same time. After some time, if the Investor withdraws $300 while the Strategy Manager’s equity grows to $1,500, the Investment Account’s Equity will be $1,200. The new ratio is calculated as follows:

Equity of Investor / Equity of Manager

1200 / 1500 = 0.8

If the Strategy Manager decides to open a position of 2 lots, for example, then the Investor’s position is opened at 1.6 lots (0.8 X 2).

In case an Investor activates their account while the Strategy Manager is already in a position then the Investor will have a position opened at the current Market Price.

And that’s how FXTM Invest works in a nutshell!

Visit the follow links to find out more:

Investors: https://www.forextime.com/investments/fxtm-invest/copy-trading

Strategy Managers: https://www.forextime.com/investments/fxtm-invest/become-a-strategy-manager

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice.

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