Understanding Profit Sharing and Fees in Copy Trading
Learn how profit sharing works between lead traders and followers, including fee calculations and settlement cycles.
How Profit Sharing Is Calculated
When a copied position is closed in profit, the lead trader receives their profit-sharing percentage from the follower's net gain. For example, if the profit share is 20% and a follower earns $100 on a copied trade, the lead trader receives $20 and the follower keeps $80.
When Fees Are Collected
Profit-sharing fees are calculated and settled when copied positions are closed. There are no fees on losing trades. The net profit is calculated after deducting trading fees, ensuring the profit share is based on your actual realized gain.
View Your Profit Sharing History
Navigate to Copy Trading > Profit Sharing to see a complete history of all profit-sharing charges and earnings. Followers see charges deducted, while lead traders see commissions earned with breakdowns per follower.
High-Water Mark Protection
Midas uses a high-water mark system to protect followers. The lead trader only earns profit shares when the follower's equity exceeds its previous peak. This means if a follower loses money and then recovers, no profit share is charged until the recovery exceeds the previous high point.