When a signal provider experiences losses, several scenarios may unfold affecting investors who copy their trades:
Both Signal Provider and Investor in Loss: If both accounts are experiencing losses, remember that profit share fees are only paid after your investment recovers past losses and begins generating new profits (High Water Mark principle).
Signal Provider in Loss but Investor in Profit: This can occur due to price differences when trades are executed. Since copying begins at current market rates, entry prices may differ from the original signal provider's positions.
Signal Provider Reaching Zero Equity: If the signal provider's account reaches zero equity or lower, all positions will automatically close due to stop-out. Any negative balance will be reset to zero.
Post Stop-Out Actions: Investors can manually stop copying after a signal provider's stop-out. Otherwise, all copying relationships will automatically terminate within 7 days. Any negative balances will be reset to zero.
Visibility After Stop-Out: Once stop-out occurs, the signal provider will no longer be visible in the FXTRADING.com Trading App.