When copying trades, it’s important to understand how allocations work. Allocation determines how much of your deposit will be used to mirror each trade of the strategy provider.
This article explains the available allocation types, how they are calculated, and how you can change them.
Key terms
Balance – Initial deposit + Deposits – Withdrawals + Realized profit – Realized loss – All commissions and swaps.
Equity – Current account value, including both balance and open trades.
Margin – Collateral reserved on your account to open and maintain positions. This is not a broker’s commission, but “frozen” funds to cover possible losses.
Allocation – The process of proportional distribution of investor funds when copying a provider’s trades. It defines what share of your deposit will be allocated to each copied trade.
💡 Note: When copying a strategy, subscriber allocation settings override provider settings. This gives subscribers the flexibility to follow their own risk preferences.
Types of allocation
1. By Balance
Trades are scaled according to the ratio of provider’s balance vs subscriber’s balance. If balances are equal, results for provider and subscriber will be identical.
2. By Balance × Ratio
Same as balance-based allocation, but multiplied by a user-defined ratio.
For example, with a ratio of 2, subscriber results (profits/losses) will be doubled compared to provider.
3. By Equity
Allocation is based on equity (real-time account value, including open positions). This ensures scaling reflects current account conditions.
4. By Equity × Ratio
Same as equity-based allocation, but multiplied by a ratio.
Example: if provider opens 0.01 lot, and ratio = 2, subscriber opens 0.02 lot.
5. By Ratio
All subscriber trades are multiplied by a fixed ratio.
Example: Ratio = 2 → provider trade of 0.5 lots = subscriber trade of 1 lot.
6. Fixed allocation
Subscriber always opens a fixed trade size, regardless of provider’s volume. Example: Ratio = 2.5 → every provider trade results in 2.5 lots for subscribe
7. By Free Margin
Allocation is calculated based on available free margin. Provider and subscriber may have different results if their available free margin differs.
Changing allocation
Subscribers can change allocation settings at any time:
1. Go to the main strategy tab in your profile.
2. Select Change type of allocation.
3. Save changes – new settings will apply to future trades.
✅ With these allocation types, you can fine-tune your risk and exposure when copying strategies, ensuring the setup matches your personal trading goals.
Frequently asked questions (FAQs)
Why are allocations important in copy trading?
Why are allocations important in copy trading?
Allocations help control risk by limiting the amount of capital used for copying trades from a strategy provider.
What happens if my allocation is too small?
What happens if my allocation is too small?
Trades may not be copied if the allocation is insufficient to open positions according to the strategy’s requirements.
Does allocation affect trade volume?
Does allocation affect trade volume?
Yes. Trade volumes are scaled proportionally based on your allocation relative to the provider’s account size.
What happens if allocated funds are fully used?
What happens if allocated funds are fully used?
No new trades will be copied until free allocated funds become available or allocation is increased.
Does allocation protect me from losses?
Does allocation protect me from losses?
Allocation limits exposure but does not eliminate risk. Losses are limited to the allocated amount but can still occur.