How Traders Can Manage Risk in Social Trading

As a follower of a Social Trading strategy, you don’t have direct control over trading decisions. However, you do have several tools at your disposal to manage your risk and determine your level of involvement

Stop Loss and Take Profit apply to all copies.

The Stop Loss and Take Profit settings allow you to control your overall exposure by applying limits across all copied trades. 

1. Select the Parameter
2. Select Threshold
3. Select Action type
4. Select Trading Action

Here’s what each parameter means:

1. Select the Parameter

• Total Loss

This is the maximum amount you are willing to lose across all copied positions. When your combined losses reach this limit, the system will automatically close all trades to protect your capital.

Example: If you set Total Loss to $500, all copied trades will close once your account shows a $500 loss.

• Total Profit

This is the target profit you want to achieve from all copied trades. When your combined profit reaches this amount, the system will close all positions to lock in gains.

Example: If you set Total Profit to $1,000, all trades will close once your account reaches that profit level.

• Floating Loss

This parameter monitors unrealized losses (open trades that are currently negative). If your floating loss hits the set limit, the system will close all positions—even if they haven’t reached the Total Loss threshold yet.

Example: If you set Floating Loss to $300, all trades will close when your open positions show a $300 loss.

2. Select Threshold

A specific value can be set as a threshold, with the unit depending on the account type.  For example, Standard, Prime, and ECN accounts use USD, while Cent accounts use USC.

3. Select Action type

Then you can have choose which action should be taken if the conditions for the Stop Loss are met: 

• Suspend
  • Your account remains linked to the strategy, but no new trades will be copied. 
  • You can resume copying at any time without re-subscribing.
• Unsubscribe
  • All open positions copied from that strategy will be closed immediately. 
  • You will no longer receive any trades from the strategy provider. 
  • To follow the strategy again, you’ll need to subscribe from scratch.

4. Select Trading Action

• Keep All - let all open positions of the subscription stay open
• Close All - close all open positions of the subscription at the current market price. 
• Close Unprofitable - close the most unprofitable open copy of the subscription. Keeps closing unprofitable positions one by one until the total floating loss is within the acceptable floating loss level. 
• Close All Unprofitable - close all unprofitable positions of the subscription.