Trader closes profitable positions but my PnL stays at 0

Trader closes profitable positions but my PnL stays at 0
When your daily payouts are 0 despite several profitable closed positions by your traders, you may start to doubt the results - but do not worry, a safety mechanism is serving you at its best!

 

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Short explanation: Your profits are placed under retain due to currently negative opened positions by your trader.

 

Longer explanation: When you see profits in retain, your trader has closed positive positions, and you are entitled to a certain amount of profits, but at the moment, this trader has open positions in the negative.

The retain is a parameter that prevents you from paying a success fee when there are imminent risks of losses. So, imagine you had 2 trades, 1 just closed with a profit of 100 USDT (from which you need to pay a success of, let's pretend, 10%), and the other one is neutral (the price stays where you bought it). Now, you are entitled to 90 USDT of profits, and the trader and Zignaly are entitled to 10 USDT (10%).


Now imagine a second scenario where one position is being closed with a 100 USDT profit while a second trade is down and your unrealized PnL (Profits or Losses) are -100 USDT. Precisely at this moment, retain comes into play! Instead of paying out the profits to you and consequently to the trader, your earnings are placed under the retain to avoid paying the trader his success fee for the previously closed trade knowing that the currently open trade may end up closing with a loss.


When a position gets closed, the system analyzes the status of the open positions again. If they are in profit, you are receiving your profits from the position + pending retain. However, if they are in the red, we store the new gains in the retain, again, waiting for them to close.

Also, if the losses are small, some profits (equal to the current losses) can be paid out without going through retain.

Overall this is a complex system designed to protect our users and encourage the traders to perform!

 

Check our article Understanding Profit-Sharing to discover more about the elements in the analytics view (there is also a video!)

 

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