Key terms
A list of key terms in alphabetical order
Account age
The number of days since a master or investment account was created in the Back Office or Web UI regardless of whether any balance or trading operations have been executed on that account.
Account login
The number assigned to a trading account opened on the MetaTrader (MT) 4 or 5 platform, which is used to log in to the platform. Master and investment accounts are opened on the B2COPY investment platform with the same numbers as they are assigned on MT.
Allocation method
The method applied to a subscription and used to define position volumes that are allocated from a master account to a subscribed investment account. For details, refer to Allocation methods for copy-trading and MAM and Allocation methods for PAMM.
Back Office
The web interface intended for brokers that want to provide copy-trading, PAMM, and MAM services to their clients using the B2COPY investment platform. In the Back Office, brokers can configure settings of the provided services, manage clients, open master and investment accounts for their clients as well as create and manage subscriptions, monitor trading statistics on client accounts, and customize the Web UI that is intended for the use of their clients.
Copy trading (also called social trading)
The service that enables investors to subscribe to master accounts of experienced traders to automatically copy positions from the master accounts when the positions are opened and closed. Investors can subscribe to and copy positions from one or several master accounts, as well as trade on investment accounts on their own. Traders who allow investors to copy positions from their master accounts earn fees from the subscribed investors.
Drawdown (DD)
DD measures the decline in the equity of a trading account due to losing trades over a specific period, expressed as a percentage. For details, refer to Drawdown and Maximum drawdown calculation. See also: Maximum drawdown
Fee plan
A payment plan set up for a master account by the account owner. The plan includes fees that are periodically deducted from subscribed investment accounts for copy-trading, PAMM, or MAM services and paid to the master account owner. The fee plan must be accepted by investors when subscribing to the master account. For a list of fees that can be included in fee plans, refer to the Fee list.
Freeze time
The period preceding the PAMM rollover, within which no requests are accepted from PAMM investors to be processed during the upcoming rollover. The requests created during freeze time will be processed during the next rollover.
High-water mark (HWM)
The highest profit has ever been achieved on an account. It is used as a threshold to determine if a trader managing a master account is paid the performance fee from subscribed investors. The fee is only paid if the HWM has been exceeded, ensuring that investors don't pay for poor or volatile performance.
Investment account
A trading account opened on MetaTrader (MT) 4 or 5 and registered on the B2COPY investment platform via the Back Office or Web UI in order to subscribe to master accounts on which copy-trading, PAMM, or MAM services are offered and benefit from following trading strategies of experienced traders.
Investor (also called a follower or subscriber)
The owner of an investment account. A beginner trader or a trader who is new to a market and wants to benefit from copying the trading strategies of experienced traders or from investing in their accounts.
Leaderboard
The list of top-performing master accounts showing high profitability, having the most followers and large amounts of assets under management (AUM) on the B2COPY investment platform.
For master traders, being at the top of the Leaderboard highly increases their exposure and, subsequently, their chances to have more followers and earn more fees.
For investors, the Leaderboard is the go-to list to find the best traders to subscribe to and copy positions from their master accounts or invest in them.
MAM (Multi-account manager)
The service enables to connect multiple investment accounts to the same master account and effectively manage them by customizing the way in which positions are allocated from the master account to each investment account. Different allocation methods, risk ratios, and fee plans can be applied to each subscribed investment account.
MAM investment accounts are used in read-only mode, meaning that investors can’t trade on their investment accounts and can only view open positions allocated from a master account. Money managers earn fees from investors for managing their accounts and can have several master accounts to effectively handle their pool of investors.
Master account
A trading account opened on MetaTrader (MT) 4 or 5 and registered on the B2COPY investment platform via the Back Office or Web UI in order to offer copy-trading, PAMM, or MAM services and earn fees from each subscribed investment account.
Master trader (also called a money manager)
The owner of a master account. A professional trader who is willing to share their trading strategy with investors and allow them to copy positions from their master account or benefit from investing funds in it. In their turn, a master trader earns fees from subscribed investors according to the subscription fee plan.
Maximum drawdown (Max DD)
Max DD indicates the largest decline in the equity of a trading account from the highest point through the lowest point during the account's lifetime. For details, refer to Drawdown and Maximum drawdown calculation. See also: Drawdown
Minimum deposit
The requirement applied to a master account by the account owner, which stipulates the minimum balance that investors must have on their investment accounts to subscribe to the designated master account. Furthermore, the same minimum balance must be maintained on the investment accounts after withdrawing funds, in order to keep the subscriptions active. The minimum deposit amount is always denoted in USD.
PAMM (Percentage allocation money management)
The form of pooled money trading that enables investors to allocate their funds to a qualified trader by subscribing their investment accounts to a trader’s master account.
The trader earns fees from the subscribed investors for trading on the master account using the pooled investors’ funds, while the profit or loss gained on the account is distributed back to the investors proportionally to their invested funds.
Promo offer
A discounted fee plan that a master account owner can set up for their account to offer potential investors to subscribe to the account with more favorable fees than those listed in the default plan. To subscribe to the master account with the discounted plan, investors should enter a promo code that has been assigned to that plan.
It’s possible to set up one or more discounted fee plans for a master account and assign them different promo codes.
Reverse Copy
The option that can be enabled for copy-trading and MAM subscriptions to change the trade side of positions when they are copied from a master account into a subscribed investment account.
If enabled, sell positions opened on a master account are copied as buy positions into a subscribed investment account, and buy positions opened on the master account are copied as sell positions.
Risk limit
The threshold used to monitor the actual risk exposure of a specific master account or subscription.
The risk limit can be assigned to a subscription by an investment account owner to indicate the maximum loss amount that the investment account can bear from that individual subscription. For details, refer to Risk limits for investors.
Various types of risk limits can be assigned to a master account to indicate the maximum trading loss that may be incurred on that account. For details, refer to Risk limits for master traders.
Rollover
For PAMM accounts, a process during which trading results gained on a PAMM master account are updated and the outcome is distributed between subscribed PAMM investors, while deposit and withdrawal requests are executed as well. The rollover process can be triggered manually by the owner of a PAMM master account or can run automatically based on a schedule.
Subscription
The arrangement that links a master account on which copy-trading, PAMM, or MAM services are offered and a specific investment account. By subscribing to a master account, the investment account owner receives a specific service and the master account owner earns fees from the subscribed investor.
Subscription code
A code that a master account owner can assign to their account to prevent investors who don't have the code from viewing the account's trading statistics and subscribing to the account.
Web UI
The web interface for end users who intend to use copy-trading, PAMM, and MAM services provided by the broker. In the Web UI, end users can create master and investment accounts, deposit and withdraw funds, create subscriptions, monitor trading statistics of their accounts, and manage their account and subscription settings.
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