Trading using someone else's funds
- Thread starter Harrison
- Start date
Francisco
New member
It is just like an investor giving you money to run a business. You need to calculate the percentage of the loaner in the total amount you intend to trade with. Your profit will be the capital plus interest. Meaning you will need to subtract the capital from your profit so that you have the interest which you will share base on the percentage the loaner contributed to the total cost. The same goes when you are running at lost and if the loaner decide to part way, you will the percentage contributed.
Clayton
New member
Personally, it's quite risky to trade with another person's fund. It's like their life is balancing between your decisions and whatever happens, you are responsible. That's what I felt when I tried a community account trading fund. It's not as big as yours when it's around ~$10000. Just a small amount of $500. I computed it's monthly rate and wins and losses with it, and I wasn't that successful. I may have been eager too much with what I can do and lost -22% of the portfolio.
It's an experiment, but it's still part of the process. Hopefully, the contrary runs wouldn't affect you.
It's an experiment, but it's still part of the process. Hopefully, the contrary runs wouldn't affect you.
Brady
New member
You can always open separete positions with your friend's money and the exchange will keep track of everything for you.
You have 10 thousand and 3 thousand of his money. You want to go long so you buy a coin with 10 and then again with 3. When you take profit you sell 10 and sell 3 in a separate trade a few seconds later and you'll see how much profit you got from 10 and from 3. Then you simply divide that profit from 3 by half and add the other half to your 10 thousand pile. This way you'll keep ading his profit to his portion of the money and always have a clean record of every trade.
You have 10 thousand and 3 thousand of his money. You want to go long so you buy a coin with 10 and then again with 3. When you take profit you sell 10 and sell 3 in a separate trade a few seconds later and you'll see how much profit you got from 10 and from 3. Then you simply divide that profit from 3 by half and add the other half to your 10 thousand pile. This way you'll keep ading his profit to his portion of the money and always have a clean record of every trade.
Tobias
New member
Its ok to sign-in and sign-out than to use only one account because your money will be mixed with your friends account and it can be a start of a confusion.
Trading with someone else fund is a lot more stressful in my opinion because your friends depends on you too much and the pressure is on your side to make it more profitable. If you want to lessen the stress then better to teach your friend how to trade and let them decide on their own.
Trading with someone else fund is a lot more stressful in my opinion because your friends depends on you too much and the pressure is on your side to make it more profitable. If you want to lessen the stress then better to teach your friend how to trade and let them decide on their own.
Arlo
New member
My advice is never to use other people's money for trading, especially if you promise profit sharing. Because sometimes trading doesn't work
smoothly according to plan, moreover crypto trading has a very high risk. If you are proficient in crypto trading, use your own capital to trading.
More comfortable and safe trading with own capital. Although the capital belongs to a close friend or family, you better not use it,just teach them
your trading skills. So let your friend trade alone, that's the decision you have to make in my opinion.
smoothly according to plan, moreover crypto trading has a very high risk. If you are proficient in crypto trading, use your own capital to trading.
More comfortable and safe trading with own capital. Although the capital belongs to a close friend or family, you better not use it,just teach them
your trading skills. So let your friend trade alone, that's the decision you have to make in my opinion.
Karson
New member
Much better here if your friend got their personal account on some exchange and you will just use them with their permission.
You must record all of your trades if in your records or journal did not match in the trade history of their accounts, then probably someone made some trades on their account.
Also, you can use some API of a trading exchange, where every account got this API Key and they will give you that, then you can do whatever based on the permission on the API, this is kinda need some need coding skills if you want to work the API keys.
You must record all of your trades if in your records or journal did not match in the trade history of their accounts, then probably someone made some trades on their account.
Also, you can use some API of a trading exchange, where every account got this API Key and they will give you that, then you can do whatever based on the permission on the API, this is kinda need some need coding skills if you want to work the API keys.