What is Equity Sync?
Equity synchronization is a balancing mechanism in FXTRADING.com's Fund Management system that ensures profits and losses are accurately reflected across all investor accounts and the fund manager's account.
Why Equity Sync is Essential
When an investor joins a fund, a corresponding amount of virtual capital is credited to the fund's trading account. As the fund manager executes trades, these are proportionally allocated to all investor accounts.
Ideally, the sum of all investors' profits or losses should exactly match the fund's overall performance. However, small discrepancies can occur due to:
Different trading servers handling fund and investor accounts
Variations in calculation precision between servers
Differences in how equity and trade values are rounded
Without synchronization, these minor differences could accumulate over time, creating unfair discrepancies between what the fund manager sees and what investors experience.
How Equity Sync Works
The equity synchronization process:
Compares closed trade results between the fund account and all linked investor accounts
Identifies any discrepancies in profit/loss calculations
Makes necessary adjustments to ensure perfect alignment
Accounts for Negative Balance Write Off protections that may have been applied to investor accounts
This process ensures complete transparency and fairness for both fund managers and investors, maintaining the integrity of the Fund Management system.
Timing of Synchronization
Equity synchronization occurs automatically at regular intervals and during critical events such as:
When trades are closed
After significant market movements
When investors join or leave the fund
This continuous balancing ensures that all participants in the fund have an accurate view of performance at all times.