Slippage and liquidity costs of executing significant Followers’ order
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The core functionality of Covesting copy-trading is the replication of all trades placed by a Manager of a Strategy by every Following of the Strategy. This allows many Followers to benefit from copying a successful Manager of a Strategy.
However, filling orders for Strategies with a significant amount of Followers’ Equity can lead to considerable price due to a rapid depletion of order books of our liquidity providers upon order execution. This price slippage has to be taken into account by Managers whose Strategies have significant current Equity in Followings.
Because a Followers’ copying order is executed on a different account separate from the manager’s one, the slippage cost of the Followers’ order is absorbed by PrimeXBT during its execution.
If there was extra slippage because of the cumulative Followers’ order amount, the additional execution cost will be applied by PrimeXBT to the Strategy account and withdrawn from the account’s balance after the order has been executed.
These additional charges are reflected in the Strategy’s with a reference to an order ID that caused the extra price slippage on execution of a Followers’ copying order:
A Strategy account is charged an extra slippage fee only when there is an extra during execution of a Followers’ copying order caused by its volume.
Strategy trade fees can be further reduced by up to 30% with .
