How Trading Works?

How Trading Works?

Allocation Method

Ztrade ACCOUNT SERVICE allows Fund Managers to trade with the funds of multiple Ztrade Investor Accounts for a pre-agreed Performance Fee (%). Profits and losses made on the Ztrade Manager's Account are automatically allocated to each Investor's Account based on the amount they invested.

Here's an example to see the Profit/Loss Allocation method in action:

The funds of the Ztrade Manager and Investors are all invested in the Manager's account. The amount of equity they invest determines their share of the overall investment, which results in their potential share of any profit/loss.

Distribution of Profit/Loss

When positions on the Ztrade Manager account are closed and the account balance increases, so when a Manager is profitable, the profits will be split among all Investors in the account based on their contribution.

ALGORITHMIC TRADING

Algorithmic trading (also called automated trading, black-box trading, or algo-trading) uses a computer program that follows a defined set of instructions (an algorithm) to place a trade. The trade, in theory, can generate profits at a speed and frequency that is impossible for a human trader.