ACE Markets Trading Platform

The Art of Two-Way Trading: Practical Analysis of CFD Short Selling Mechanisms and Long/Short Strategies

Thu, 07 May 2026 10:15:06 +0800

In the traditional world of stock investment, most people's understanding is often limited to "buy low, sell high." However, financial market fluctuations are never one-way; when the market turns downward, many investors can only helplessly watch their assets shrink. Contracts for Difference (CFDs) have broken this deadlock, giving traders a crucial capability— short selling . This means that regardless of whether the market is sunny or rainy, as long as the directional judgment is correct, there is an opportunity to capture the potential returns from price fluctuations. This article will delve into the short selling mechanism of CFDs, compare it with traditional securities lending, and explore how to flexibly apply long and short strategies in different market environments.

I. Short Selling Mechanism Unveiled: The Fundamental Differences Between CFDs and Securities Lending

For investors familiar with the stock market, "short selling" often evokes the complex concept of "securities lending." However, in CFD trading, this mechanism is greatly simplified. Understanding the difference between the two is a crucial step for beginners to advance.

　　1. Traditional securities lending: cumbersome "borrowing and repaying" logic

Traditional short selling essentially involves borrowing physical shares from a brokerage firm, selling them at a high price, and then buying them back to repay the loan once the price falls. This process involves cumbersome borrowing procedures, limited stock availability (there may be no shares available to borrow), and a high capital threshold (usually requiring a margin of over 50%). Furthermore, short selling is subject to regulations such as "no short selling at the break-even point," and the short seller must also bear the cost of subsidizing dividends when the stock pays dividends.

　　2. CFD Short Selling: A Pure Game of "Price Difference"

In contrast, short selling CFDs is much more streamlined. When you short CFDs through a platform like ACE Markets , you don't actually own or borrow the underlying asset (such as Apple stock). You're simply entering into a contract with a broker to sell at the current price at a future point in time, buy back at the future price, and settle the difference.

　　Easy to use : Simply click "Sell" on the trading software; no need to apply for a securities loan.

　　No restrictions on the availability of securities : As long as there are market quotes, you can short global stock indices, foreign exchange, commodities, etc., regardless of whether there are individual stock securities available.

　　Cost transparency : The main costs typically include the spread and overnight interest (swap), without complicated borrowing rates.

II. Trend Following and Counter-Trend: Strategies for Different Market Conditions

Having mastered the tools for two-way trading, the next step is to strategize and deploy strategies in different market environments. The flexibility of CFDs makes them suitable for both trend following and hedging.

　　1. Bull Market Strategy: Buy/Long

This is the most classic strategy. When your analysis suggests that the price of an asset (such as gold or the Nasdaq index) will rise, you can establish a long position.

　　Application scenarios : Going long is the most direct way to profit during economic recovery, earnings season when results exceed expectations, or when technical indicators break through key resistance levels.

　　Key strategy points : Use leverage to amplify the effectiveness of funds, but be sure to set stop-loss orders to prevent being shaken out of the market due to short-term corrections.

　　2. Bear Market: Active Short Selling

When market panic prevails or the technical indicators show a clear downward trend, short selling strategies can be very effective.

　　Application scenarios : When economic recession concerns, geopolitical conflicts leading to stock market crashes, or currencies depreciating due to interest rate decisions, profits can be captured by shorting related instruments (such as shorting stock index CFDs or shorting currency pairs).

　　Key Strategy Points : The theoretical risk of short selling is "unlimited" on paper (because prices can rise indefinitely), therefore strict risk management is crucial. Newcomers to short selling must utilize the stop-loss function provided by ACE Markets to lock in maximum losses.

　　3. Volatile Markets: Hedging

This is an advanced use of CFD short selling. If you hold physical stocks and are worried that a short-term market decline will drag down your individual stocks, but you don't want to sell your high-quality shares, you can place a corresponding CFD short order.

Logic : If the market falls, your physical stocks lose money, but your CFD short positions make money. The two offset each other, partially mitigating the loss. This is like buying "insurance" for your investment portfolio.

III. Leverage: A Double-Edged Sword – Opportunities and Risks Coexist

Whether going long or short, CFD trading is usually accompanied by leverage . This means that you only need to pay a small portion of the contract value (margin) to control a large position.

　　Amplification effect : Leverage can amplify your potential returns, allowing even small amounts of capital to participate in trading high-value assets. For example, with 1:10 leverage, a 1% change in market price could result in a 10% change in your account equity.

　　Risk Warning : It is crucial to understand that leverage can amplify losses. Losses will accelerate when the market moves against you. Therefore, properly controlling your position size (e.g., ensuring that each trade's risk does not exceed 2% of your total capital) is fundamental to survival.

IV. Why choose ACE Markets to begin your long/short journey?

In the complex and ever-changing financial markets, choosing a transparent and efficient trading platform is crucial. ACE Markets is committed to providing global traders with an exceptional CFD trading environment, helping you navigate market fluctuations with confidence.

　　A wide range of short-selling instruments : At ACE Markets , you can not only short major currency pairs, but also easily short popular global stock indices (such as Nasdaq and Hang Seng Index), commodities (such as crude oil and gold), and thousands of international stock CFDs, truly achieving "24/7" trading.

　　Extreme execution speed : We use institutional-grade STP (Straight Through Processing) technology, which ensures that orders are executed at an extremely fast average speed. This ensures that when you seize a fleeting short-selling opportunity, you can get a trade at a price that is closest to the market price, minimizing the uncertainty caused by slippage.

　　Transparent Cost Structure : We understand the impact of costs on trading strategies. ACE Markets offers highly competitive spreads, and all costs and potential interest are clearly displayed when you switch between long and short positions, with no hidden fees.

　　Powerful risk control tools : To address the potential risks of short selling, the platform offers one-click stop-loss and take-profit settings to help you execute your trading plan in a disciplined manner and protect your principal.

Conclusion

From one-way buying to two-way trading, CFD trading has opened a whole new door for investors. Understanding the differences between short selling mechanisms and traditional securities lending, and mastering long and short strategies in different market environments, is essential for every trader. Remember, the market is always full of variables; the tools themselves are neither right nor wrong. The key lies in whether the user possesses sufficient risk awareness and trading discipline.

　　Risk Warning : Contracts for Difference (CFDs) trading carries a high level of risk and may not be suitable for all investors. Due to leverage, there is a risk of losing your money rapidly. Before trading, ensure you fully understand the risks involved and only trade with funds you can afford to lose. Past performance is not indicative of future results.

With the rules for yen intervention becoming clearer, the interplay between policy bottom lines and market dynamics has entered a new phase

Wed, 06 May 2026 16:13:10 +0800

Recent intraday fluctuations in the Japanese yen have drawn significant attention in global currency markets. Japan's Ministry of Finance has unusually publicly interpreted the IMF's foreign exchange intervention rules, clearly defining the boundaries for future policy actions. Based on the latest statements from Japanese officials, Bloomberg market data, and calculations from major investment banks, the ACE Markets foreign exchange strategy team believes that the Japanese authorities have clearly conveyed a policy signal of "firmly supporting the yen while strictly adhering to the rules." In the short term, the yen will receive dual support from expectations of intervention and interest rate hikes, but the core drivers of its long-term depreciation have not fundamentally reversed.

The official stance on intervention rules is: clear operational space and institutional boundaries.

ACE Markets noted that on Monday, a senior Finance Ministry official accompanying Japanese Finance Minister Satsuki Katayama on his trip publicly cited the IMF rules framework for the first time, providing an authoritative explanation of the statistical definition of foreign exchange market intervention: intervention actions over three consecutive working days will be considered a single intervention event . Even if Japan is on a public holiday, as long as global markets are trading normally, the operation on that day can still be counted in the consecutive intervention days. According to this definition, the suspected intervention from April 30 (last Thursday) to May 4 (Monday) constitutes a complete operation.

More importantly, the official clearly defined the red line for the frequency of intervention: no more than three such interventions within six months will still meet the IMF's classification criteria for a "freely floating exchange rate regime" ; if more than three are implemented, the exchange rate regime classification will be downgraded to "floating." This means that as of November this year, the Japanese authorities have only two full intervention windows remaining, each lasting a maximum of three trading days. ACE Markets believes that this proactive clarification of the rules by the authorities is not a restriction on their own actions, but rather provides institutional legitimacy for subsequent phased and continuous interventions, while sending a signal to the market that "policy operations are regulated and there will be no unlimited interventions," which helps stabilize market expectations.

The policy bottom line is clear: the 160 mark has become an insurmountable line of defense.

Last week, the yen depreciated to a multi-year low of 160.72, leading the market to widely believe that Japanese authorities intervened on April 30. Bloomberg estimates suggest the intervention amounted to approximately 5.4 trillion yen (US$34.5 billion), comparable to the intervention in 2024. Although Japanese officials have not confirmed any intervention, Satsuki Katayama reiterated on Monday that Japan is "ready to take bold action against currency speculation," continuing the consensus reached in last year's Japan-US exchange rate agreement.

ACE Markets, in conjunction with analyses from Goldman Sachs, TD Securities, and other institutions, believes that the 160 USD/JPY level has become a core policy bottom line for the Japanese Ministry of Finance . Holding this level can effectively deter speculative short sellers of the yen, and a clear shift in market sentiment has already occurred: yen short positions are being actively closed, while options traders are continuously increasing their yen long bets, with short-term speculative long positions reaching their highest level since January. Morgan Stanley and other institutions have also observed a significant increase in yen long positions in the foreign exchange options market since suspected intervention last week.

On Monday during Asian trading hours, the yen briefly surged 0.8% to 155.72 due to thin market liquidity caused by Japan's Golden Week holiday, before giving back most of its gains and stabilizing in a narrow range above 157. ACE Markets forex analysts pointed out that the USD/JPY pair has faced resistance twice above 157, making this level a key point for short-term bullish and bearish battles. The market is highly wary of Japan potentially following the 2024 model, conducting multiple short-term follow-up actions after the initial intervention.

Short-term support and long-term concerns: Intervention is unlikely to change the downward trend in currency prices.

ACE Markets believes the yen will receive two major supports in the short term: first, the persistent expectation of intervention, as Japan has ample foreign exchange reserves (enough to support 30 interventions of the same level based on last week's figures), and the authorities have explicitly stated that "there is no window of opportunity for intervention"; second, rising expectations of a June rate hike by the Bank of Japan, with last week's 6:3 vote in favor of the rate hike further reinforcing market pricing in a June rate hike. However, in the medium to long term, the foundation for a stronger yen remains weak. ACE Markets' in-depth analysis points out that the two core factors leading to the yen's continued depreciation have not changed:

The US-Japan interest rate differential continues to widen : Overseas central banks maintain a hawkish stance due to inflationary pressures, and the expectation of a Fed rate cut continues to be postponed. The US-Japan interest rate differential is unlikely to reverse quickly, and the yen's role as a financing currency for carry trades will continue for a long time.

High energy import costs : The ongoing geopolitical conflict in the Middle East continues to push up oil prices, and as an economy highly dependent on energy imports, Japan's trade balance pressure will continue to weigh on the yen.

Bloomberg's compiled options market data shows that traders currently believe there is about a 52% probability that the yen will fall below the 160 level again by the end of June this year. ACE Markets believes that simple foreign exchange intervention can only smooth exchange rate fluctuations in the short term and cannot reverse the trend. If the Bank of Japan cannot raise interest rates at a pace that matches inflation, the long-term depreciation pressure on the yen will remain.

ACE Markets Outlook

In summary, by clearly defining intervention rules and firmly defending the 160 level, Japanese authorities have successfully stabilized the yen exchange rate in the short term. It is expected that the yen will likely maintain a consolidation pattern within the 155-160 range over the next two months. Investors should pay close attention to three key points: first, whether the Japanese Ministry of Finance will utilize the remaining two intervention windows; second, whether the Bank of Japan's June policy meeting will proceed with the expected interest rate hike; and third, the impact of evolving Middle East geopolitical conflicts on international oil prices. ACE Markets reminds investors that in the current highly uncertain market environment, they should be wary of sharp exchange rate fluctuations triggered by intervention news, while closely monitoring the latest developments in the divergence between US and Japanese monetary policies and rationally managing position risks.

In-Depth Selection and Cultivation Strategies for CFD Trading Instruments

Wed, 06 May 2026 10:34:24 +0800

In the world of Contracts for Difference (CFD) trading, beginners are often overwhelmed by the dazzling array of trading instruments. From the ever-changing forex market to gold and crude oil, which influence global markets, and stock indices, which reflect the economic barometer, each instrument is like a gold mine waiting to be explored, but the geological structure (market characteristics) of each mine is vastly different. Many beginners easily fall into the trap of "casting a wide net," often resulting in neglecting some areas due to scattered efforts. So, in the process of trading, should we specialize in one instrument or diversify across several? And how can we make the optimal choice based on our own circumstances? This article will combine practical market experience to provide you with an in-depth analysis of the logic behind selecting trading instruments.

I. Market Overview: Characteristics of Mainstream CFD Products

Different trading instruments are driven by different factors, and their volatility, trading time, and capital requirements vary greatly. Understanding their "temperament" is the first step in choosing trading targets.

Foreign Exchange (Forex): As the world's most liquid market, forex trading primarily revolves around currency pairs (such as EUR/USD). Its movements are heavily influenced by central bank interest rate decisions, non-farm payroll data, and macroeconomic indicators. The forex market typically operates 24 hours a day (excluding weekends), boasts excellent liquidity, and relatively low spreads, making it suitable for traders who enjoy studying macroeconomics and engaging in short-term swing trading.

Precious Metals (Gold XAU/USD): Gold is hailed as the "King of Safe Havens." During periods of market turmoil or high inflation, gold often exhibits strong upward momentum. It is influenced by both the US dollar index and geopolitical risk aversion. Compared to forex, gold typically has higher volatility and larger intraday price swings, making it a preferred choice for many traders who prefer quick in-and-out trades.

Energy (Crude Oil): Crude oil is the lifeblood of industry, and its price is extremely sensitive to supply and demand, OPEC+ policies, and geopolitical conflicts. Crude oil prices often fluctuate wildly and are significantly affected by EIA inventory data. This is a "high-risk, high-potential-reward" field that demands a high level of psychological resilience from traders.

Stock indices, such as the NASDAQ (NAS100) and S&P 500 (SPX500), reflect the overall economic performance of a country or region. Compared to individual stocks, stock indices are less susceptible to manipulation by large investors and their price movements are more consistent. They are suitable for traders who focus on overall market trends rather than the fundamentals of individual stocks.

II. In-depth cultivation or broad casting? The game of trading strategies

After understanding the characteristics of a particular product, the core choice for beginners is: to focus on becoming an expert in one product, or to spread their efforts across multiple products?

1. Advice for beginners: Focus on mastering one skill first, then broaden your knowledge base.

For novice traders, it is strongly recommended to start by mastering 1-2 instruments. Trading is not just about clicking buy and sell; it's also about sensing the rhythm of the market. Each instrument has its unique "personality" and volatility patterns. For example, the British pound (GBP) is usually more volatile and fluctuates more sharply than the Japanese yen (JPY); and gold's price action during data releases is often more direct than that of forex.

When you focus on a single instrument (such as gold or EUR/USD), you can spend time studying its historical price movements, observing its performance across different timeframes (Asian, European, and US sessions), and familiarizing yourself with how it responds to Fed decisions or non-farm payroll data. This deep familiarity helps you develop a feel for the market and identify true and false breakouts. Conversely, if you try to trade all instruments from the start, your energy will be severely scattered, and you may end up becoming a blind follower who "knows what but not why."

2. Advanced Path: Constructing Related Portfolios

Once you've mastered a particular instrument, you can try expanding to 2-3 instruments with low correlation or complementarity. For example, you can simultaneously monitor gold (safe haven) and the Nasdaq (risk appetite). When market sentiment is optimistic, the Nasdaq strengthens; when the market is panicked, gold strengthens. This combination provides trading opportunities in different market environments while also hedging against the risk of prolonged consolidation in a single instrument. However, remember not to overdo it with too many instruments; 3-5 is sufficient, otherwise managing them will become overwhelming.

III. Four Core Considerations When Selecting Varieties

When choosing a specific area to focus on, one should not blindly enter the market simply because "I've heard it's very profitable." The following four key dimensions must be considered:

Capital threshold and leverage ratio:

Different instruments require different margin requirements. For example, the margin required to trade one lot of crude oil is usually higher than that for forex currency pairs. Beginners should choose instruments appropriate to their account balance. If you have a small amount of capital but try to trade high-value, large contracts, you are more likely to trigger liquidation due to slight fluctuations. Also, understand the leverage ratio offered by the platform; high leverage means high risk, so be sure to trade within your means.

Volatility and Risk Tolerance:

Honestly assess your own risk tolerance. If you can't handle large fluctuations in your account balance within a short period, highly volatile cryptocurrencies or crude oil may not be for you; perhaps more stable major currency pairs (such as EUR/USD) or stock indices would be better suited. Conversely, if you crave excitement and have strong risk management skills, gold and crude oil offer more trading opportunities.

Matching trading hours with work and rest schedules:

While the CFD market is open most of the time, the optimal trading hours differ for different instruments. Forex is typically active during the US session (8 PM to 12 AM Beijing time), while the Nikkei index is more active during the Asian morning session. Choosing an instrument that aligns with your schedule ensures you're monitoring the market when you're most alert, avoiding mistakes due to fatigue.

Familiarity with fundamental drivers:

Choose instruments in areas you are relatively familiar with. If you regularly follow tech stock news, trading the Nasdaq index or related tech stock CFDs will be more advantageous; if you focus on international politics and the dollar's performance, gold and crude oil are better entry points. Familiar background knowledge can help you anticipate potential market movements.

IV. Your Powerful Tool for Global Trading

Whether you ultimately decide to delve into the epic swings of gold or explore the ever-changing world of forex, a reliable trading platform is essential. At ACE Markets, you gain one-stop access to major global financial markets without having to switch between multiple platforms. We offer a comprehensive range of CFD products, including forex, precious metals, energy, global stock indices, and popular cryptocurrencies. Our platform boasts industry-leading low spreads and millisecond-level order execution speeds, ensuring you can capture market opportunities with lower costs and less slippage. Furthermore, we provide powerful charting tools and market news updates to help you delve into each of your preferred instruments, validating your trading logic from both technical and fundamental perspectives.

The path to trading success begins with making the right choices, is built on focus, and endures through effective risk management. We hope every trader can find their own "home ground," making rational decisions and achieving steady, long-term growth with the support of ACE Markets.

Trading Survival Rules: How to Avoid Account Blowouts Using Stop-Loss and Position Management?

Thu, 30 Apr 2026 10:47:04 +0800

In the ever-changing financial markets, novices often focus too much on "how to make money" and neglect "how to survive." Trading is not a 100-meter sprint, but a long marathon; only by preserving capital can one have a chance to win in the long run. A sound risk control system is the trader's moat, requiring us to prioritize risk awareness and build a safety net for our accounts through rigorous stop-loss and take-profit orders and rational position management. At ACE Markets, we consistently advocate rational investment, placing risk management at the core of our trading strategies to help users navigate volatile markets successfully and sustainably.

I. Stop-loss and Take-profit: The "Seatbelt" of Trading

Stop-loss and take-profit orders are the most basic and important risk management tools in trading, like seatbelts in a car. A fixed stop-loss involves setting a specific price level when opening a position. Once the market price reaches that level, the system automatically closes the position, locking in losses within an acceptable range. This is the bottom line for controlling the maximum loss in a single trade and effectively prevents emotionally driven holding of losing positions. In conjunction with this is a take-profit strategy, which helps traders automatically secure profits when the expected target is reached, avoiding profit retracement due to greed. For beginners, strictly adhering to fixed stop-loss orders is the first lesson to avoid being eliminated by the market; never rely on luck.

When a trade is moving in your favor, a trailing stop is a powerful tool for locking in profits. It allows the stop-loss line to move in tandem with the price, whether it's going long or short. For example, after you've made a profit from a long position, you can move your stop-loss up to near your cost price. Even if the market reverses later, this ensures you don't lose money and may even protect some of your profits. This strategy allows profits to run while maintaining a constant focus on risk management. The ACE Markets platform supports flexible, customizable stop-loss and take-profit logic, allowing users to set appropriate parameters based on market volatility for more relaxed trading.

II. Position Management: Kelly Criterion and the 2% Rule

"Never go all in" is an ironclad rule in trading. Scientific position management allows you to retain capital even after a series of losses. The famous Kelly Criterion provides a mathematical basis for position sizing, but in actual trading, applying it directly is often too aggressive. Therefore, a more practical core principle is the "2% rule," which states that the expected loss on a single trade should not exceed 2% of your total capital. For example, if your account has $10,000, then the maximum stop-loss loss on a single trade should be controlled within $200. This method of diversifying risk greatly improves the lifespan of your account.

In terms of position averaging strategies, the pyramid averaging method is a powerful tool for trend trading, while the inverted pyramid averaging method is an accelerator of margin calls. Pyramid averaging refers to gradually adding to a position after making a profit, as the trend is confirmed, but the number of lots added decreases with each step (e.g., 1 lot, 0.5 lots, 0.3 lots), forming a pyramid structure with a large bottom and a small top. This can both expand profits and keep the average cost at a reasonable level. Conversely, inverted pyramid averaging (averaging down) refers to continuously adding to a losing position in an attempt to lower the average cost, buying more as the price falls and increasing the position size. This can easily lead to margin calls in trending markets and is the fastest path to margin calls for beginners; it should be avoided at all costs.

III. Coping Strategies: Utilizing Tools and Discipline

In the face of market volatility, stubbornly holding on is never the solution. Smart traders know how to use tools and strategies to mitigate risk. On the ACE Markets trading interface, you can clearly see real-time margin ratios and usage. It is recommended to reduce your position size to 1/3 or even 1/4 of your usual size during such high-risk periods and always set stop-loss orders. By combining the precision of limit orders with strict position control, you can transform from a passive "victim" to a "controller" who calmly responds to market fluctuations.

Furthermore, understanding the liquidation and forced liquidation mechanisms demonstrates respect for the market. Liquidation occurs when market volatility causes insufficient funds in an account to maintain positions, resulting in forced liquidation by the system. The core indicator is the margin level (pre-deposit ratio), calculated as: Net Asset Value / Used Margin × 100%. When this ratio falls below the platform's set liquidation threshold (e.g., 100% or 50%), the system will automatically execute forced liquidation. This means that if your account's net asset value shrinks significantly due to losses, reaching the red line, the platform will take over and close your positions to prevent further losses.

In extreme market conditions (such as a black swan event involving the Swiss franc or a sudden war), the market may experience sharp gaps, causing prices to instantly breach stop-loss and liquidation levels, resulting in a negative account balance (margin call). In such situations, the "negative balance protection" mechanism provided by reputable platforms becomes crucial. This means that even in the event of an extreme margin call, the platform will cover losses exceeding the principal, resetting the account balance to zero. Users do not need to make up the negative difference and will not owe the platform money. ACE Markets employs strict dynamic margin monitoring and a negative balance protection policy, providing a final, solid line of defense for users' funds, ensuring that even in the worst-case scenario, the user only loses all their principal, with absolutely no risk of incurring debt.

Leverage is a double-edged sword: How to use margin to leverage large trades? Beware of the "margin call" red line!

Wed, 29 Apr 2026 10:39:58 +0800

In the ever-changing global financial markets, Contracts for Difference (CFDs) trading has attracted considerable attention due to its unique flexibility. For newcomers to the market, understanding the mechanisms of leverage and margin is the first step towards becoming a professional trader. This is not only about techniques for amplifying returns, but also about the survival rules for preserving capital. At ACE Markets, we consistently advocate for rational investing, helping you utilize tools while remaining vigilant about potential risks.

I. Leverage Mechanism: Using "Small Deposits" to Drive "Big Business"

Many beginners often ask, "Why can I trade $100,000 worth of gold when I only have $1,000 in my account?" The magic behind this is leverage, and the $1,000 in your account is the margin.

Simply put, leverage is a "loan" offered to you by a broker. It allows you to hold contracts of corresponding value without paying the full value of the asset, only a certain percentage as a "deposit". For example, if the leverage ratio for gold is 1:100, it means that for every $1 you invest, the platform lends you $99, totaling $100, to capture market fluctuations.

ACE Markets offers flexible leverage options designed to help users with varying capital levels participate in global markets. However, please remember that leverage is a double-edged sword. While it amplifies potential profits, it also proportionally amplifies the risk of losses. Understanding this is crucial to avoiding impulsive trading.

II. Let the numbers speak for themselves: How does leverage amplify profits and losses?

To visually demonstrate the power of leverage, let's look at a specific example. Suppose the current price of gold is $2,000 per ounce, and you are bullish on the price of gold, deciding to go long.

Scene setting:

Trading instrument: Gold (XAU/USD)

Contract size: 1 lot (100 ounces)

Total position value: 100 ounces x $2,000 = $200,000

Own funds: US$2,000

Leverage ratio: 1:100

Required deposit: $200,000 ÷ 100 = $2,000 (meaning all the money in your account will be used as a deposit).

Now, let's see what happens when the price of gold fluctuates by 1%:

Scenario A: Gold prices rise by 1% (to $2020)

Profit amount: (2020 - 2000) × 100 ounces = $2,000.

Return on principal: 2,000 ÷ 2,000 = 100%.

Analysis: The price of gold only rose by 1%, but your principal doubled. This is the positive amplification effect of leverage.

Scenario B: Gold prices fall by 1% (to $1980).

Loss amount: (1980 - 2000) × 100 ounces = -$2,000.

The rate of loss on principal is: -2,000 ÷ 2,000 = -100%.

Analysis: A mere 1% drop in gold prices wiped out your entire $2,000 principal. This is the cruel reality of leverage—it not only amplifies profits but also accelerates the depletion of your initial capital.

This case illustrates that with high leverage, even minor market reversals can severely damage an account. Therefore, when trading on ACE Markets, never be blinded by amplified profits; always be aware of the risk of price reversals.

III. The critical line: forced liquidation (margin call) mechanism

In scenario B above, when losses reach a certain level and trigger the platform's "red line," the system will forcibly liquidate the position. This is called forced liquidation, commonly known as "margin call."

What is the prepayment ratio?

Platforms typically monitor your account risk using the "Equity / Margin × 100%" ratio.

Equity: Your account balance ± the floating profit or loss of your current holdings.

Margin used: The deposit that has been used up.

When the market moves against your positions, floating losses increase, causing your net worth to decrease, and your prepayment ratio to drop accordingly. Once this ratio falls below the platform's set liquidation threshold (e.g., 50% or 20%), the system will activate a forced liquidation mechanism, automatically selling your positions to prevent further losses.

Why does a margin call occur?

Overleveraging: Opening positions with excessively large numbers of lots results in excessively high margin requirements, leaving the account with almost no remaining funds to withstand market fluctuations.

Stubbornly holding on against the trend: Not setting stop-loss orders when incurring losses, hoping for a market correction, resulting in losses snowballing until the liquidation line is reached.

Ignoring overnight interest: Holding positions in some instruments overnight will incur fees, which will erode net asset value over time.

At ACE Markets, we advise beginners to strictly control their positions and reserve sufficient "buffer funds" to cope with normal market fluctuations, so as to avoid triggering the liquidation red line due to momentary impulses.

IV. Survival Rules: How to Avoid Being "Kicked Out"?

After understanding the risks of leverage and the mechanism of margin calls, we need to establish the right trading habits in order to survive longer in the market.

Avoid heavy positions; start with light positions.

A common mistake beginners make is trying to "go all in." It's recommended that the margin for a single trade should not exceed 10%-20% of your total capital. Using smaller positions gives you breathing room during market fluctuations, preventing you from instantly losing everything.

Strictly set stop-loss orders.

Stop-loss orders are a trader's "seatbelt." Set a stop-loss price when opening a position; when the price reaches that level, the system will automatically close the position, locking in losses within your acceptable range. Don't take chances; strictly adhere to your trading plan.

Understanding and utilizing negative balance protection

Reputable platforms typically offer a "negative balance protection" policy. This means that in extreme market conditions (such as a black swan event involving the Swiss franc), even if a market gap causes a margin call (losses exceeding the principal), the platform will reset the account balance to zero. You will not need to make up the negative difference and will not owe the platform money. This is a crucial bottom line for reputable platforms in protecting user rights.

Continuous learning, simulation first

Before investing real money, familiarize yourself with leverage calculations and liquidation rules using a demo account provided by ACE Markets. Experience the volatility under different leverage ratios through the demo account to build a realistic understanding of risk.

In the world of trading, longevity is more important than quick profits. Leverage is a tool, not gambling chips. We hope that everyone embarking on their journey with ACE Markets will respect the market, make rational decisions, and seek their own opportunities while controlling risk.

Risk Warning: Contracts for Difference (CFDs) trading carries a high level of risk and may not be suitable for all investors. Due to leverage, there is a risk of losing your money rapidly. Please ensure you fully understand the risks involved and only trade with funds you can afford to lose.

From the brink of liquidation to stable survival: ACE Markets' practical guide to risk management

Tue, 28 Apr 2026 09:44:49 +0800

In the volatile financial markets, novices often focus too much on "how to make money" and neglect "how to survive." Trading is not a 100-meter sprint, but a long marathon; only by preserving capital can one have a chance to win in the long run. A sound risk management system is the trader's moat, requiring us to prioritize risk awareness and build a safety net for our accounts through rigorous stop-loss and take-profit orders, rational position management, and a clear understanding of liquidation. At ACE Markets, we consistently advocate rational investment, placing risk management at the core of our trading strategies to help users navigate volatile markets successfully.

I. Stop-loss and take-profit: The "seatbelt" of trading

II. Position Management: Kelly Criterion and the 2% Rule

III. Margin Call and Forced Liquidation: Margin and Negative Balance Protection

Understanding liquidation and forced liquidation mechanisms demonstrates respect for the market. Liquidation occurs when market volatility causes insufficient funds in an account to maintain positions, resulting in forced liquidation by the system. The core indicator is the margin level (pre-deposit ratio), calculated as: Net Asset Value / Used Margin × 100%. When this ratio falls below the platform's set liquidation threshold (e.g., 100% or 50%), the system will automatically execute forced liquidation. This means that if your account's net asset value shrinks significantly due to losses, reaching the red line, the platform will take over and close your positions to prevent further losses.

In extreme market conditions (such as a black swan event involving the Swiss franc or a sudden war), sharp price gaps can occur, causing prices to instantly breach stop-loss and liquidation levels, resulting in a negative account balance (margin call). In such situations, the "negative balance protection" mechanism provided by reputable platforms becomes crucial. This means that even in the event of an extreme margin call, the platform will cover losses exceeding the principal, resetting the account balance to zero. Users do not need to make up the negative difference and will not owe the platform money. ACE Markets employs strict dynamic margin monitoring and a negative balance protection policy, providing a final, solid line of defense for users' funds, ensuring that even in the worst-case scenario, the user only loses all their principal, with absolutely no risk of incurring debt.

A Look Ahead to the Super Central Bank Week: The High-Altitude Balancing Technique of Global Monetary Policy

Mon, 27 Apr 2026 17:22:53 +0800

Global financial markets are entering the most critical policy window of this century, with the G7 central banks holding their policy meetings in the same week for the first time in a row, jointly influencing the monetary policy direction that accounts for half of the global economy. The ACE Markets analysis team believes that, with energy prices continuing to fluctuate wildly due to geopolitical conflicts, this global monetary policy "competition" has evolved into a tightrope walk, seeking a delicate balance between upward inflationary pressures and slowing economic growth. Any deviation in policy signals could trigger a chain reaction in global markets.

Policymakers' dual dilemma: resurgence of inflation and looming growth concerns.

ACE Markets observes that central banks worldwide are facing a more complex decision-making environment than ever before. On one hand, the surge in oil prices triggered by the escalating conflict in the Middle East is reigniting global inflation risks, with consumer price indices in several major economies showing clear signs of recovery. The UK's CPI rose 3.3% year-on-year in March, a significant acceleration from the previous month, primarily driven by a sharp rise in automotive fuel costs. A senior economist at ACE Markets points out that this energy-driven inflationary pressure should not be underestimated; the lessons learned from the initial misjudgment of "temporary inflation" during the early stages of the pandemic are still fresh in everyone's minds, and central bank policymakers remain highly vigilant.

On the other hand, persistently high prices are suppressing consumer demand, and coupled with the continued erosion of business confidence by geopolitical uncertainties, the global economic growth outlook is increasingly clouded. This dilemma forces central bank officials to carefully choose their policy signals. The ACE Markets market strategy team emphasizes that in the current highly sensitive market environment, even subtle changes in wording can be over-interpreted and trigger sharp fluctuations.

Reconstructing Traditional Pricing Logic: A Historic Divergence Between Gold and US Treasury Bonds

ACE Markets' in-depth research reveals that the global financial market is undergoing a profound structural transformation, breaking down traditional asset pricing logic. For a long time, US Treasury yields have been considered the core anchor for gold pricing, with real US Treasury rates representing the opportunity cost of holding gold, showing a stable negative correlation. However, this pattern saw a historic divergence in April 2025: London spot gold prices rose from $3123.20/ounce to $3288.12/ounce that month, an increase of 5.26%, briefly approaching the $3500/ounce mark; simultaneously, COMEX gold futures prices rose 6%, while the 10-year US Treasury yield surged 48 basis points in a single week, and the US dollar index fell by more than 4% during the same period.

ACE Markets analysts believe that this rare phenomenon of simultaneous changes in these three factors reflects a fundamental shift in global capital flows. The core driving force behind gold prices is no longer traditional interest rates or inflation variables, but rather the collective concern of global central banks about the credibility of the US dollar. The Trump administration's "reciprocal tariffs" policy has further exacerbated global trade frictions, putting pressure on the dollar and continuously weakening market confidence in it. Against this backdrop, global central banks have launched a sustained gold-buying spree: the latest data from the World Gold Council shows that global official gold reserves increased by 244 tons in the first quarter of 2025, marking the 16th consecutive year of net gold purchases by global central banks. ACE Markets predicts that against the backdrop of profound adjustments in the current international political and economic landscape, gold prices will remain more likely to rise than fall for a considerable period, and increasing gold holdings will remain a long-term strategic choice for central banks worldwide.

Meanwhile, financial markets are exhibiting a clear divergence: stock and credit markets continue to rise as traders selectively ignore the impact of geopolitical conflicts, while government bond yields are stuck at high levels, with the average daily fluctuation of 1-3 year government bond yields falling to about 2 basis points, less than half the level in March. ACE Markets reminds market participants that this divergence presents new challenges to investment strategies across different asset classes: bond investors need to re-examine traditional trading logic and be wary of central banks' hawkish anti-inflationary rhetoric potentially pushing up bond yields; while gold investors should focus on the sustainability of global central bank gold purchases and seize the strategic investment opportunities presented by this long-term trend.

The delicate balancing act of central banks around the world: cautious hawkish stance becomes the mainstream tone

The Bank of Japan will kick off this super central bank week. ACE Markets Asia market strategists believe that Governor Kazuo Ueda is standing at a turning point in Japanese monetary policy, a point unseen in decades. With the yen nearing intervention thresholds and domestic inflationary pressures emerging, the market generally expects the Bank of Japan to maintain current interest rates, but may release hawkish signals about future rate hikes through its quarterly outlook report. This "hawkish inaction" stance will lay the groundwork for policy adjustments in June and even December.

This Federal Reserve meeting carries special symbolic significance, as it will be Chairman Powell's last meeting during his tenure. ACE Markets' chief U.S. economist points out that against the backdrop of escalating U.S.-Iran conflict, Fed officials have repeatedly warned that the oil price shock could force them to reconsider their previous policy path. Powell is expected to adopt a "neutral stance" at the press conference, acknowledging the upside risks to inflation from the energy price shock while also emphasizing the uncertainties facing economic growth. This art of balancing is fully reflected in market expectations: over the past week, market expectations for a rate cut before the end of the year have fluctuated wildly between 25% and 60%.

European Central Bank President Christine Lagarde has recently expressed clear concerns about global economic uncertainty, and ACE Markets expects her to reiterate this stance at Thursday's meeting. While the market widely considers a June rate hike by the ECB almost a certainty, Lagarde needs to convey a firm commitment to combating inflation without further damaging the already fragile Eurozone economy. The Bank of England faces an even more severe inflation situation; the country's March CPI rose more than expected, prompting the money market to revise its expectations for rate hikes this year upward from just one to at least two.

From Inflation Anxiety to Growth Concerns: A Potential Turning Point in the Policy Cycle

The ACE Markets macro research team believes that while central banks are currently focused on the threat of inflation, if high oil prices and geopolitical pressures begin to significantly erode global demand, markets and policymakers may have to shift their attention to concerns about economic growth. This shift in focus could ultimately lower official and market borrowing costs, thus initiating a new monetary policy cycle.

But before that, central bank officials must demonstrate sufficient policy resolve. Just as the misjudgment of "temporary inflation" during the pandemic caught many policymakers off guard, the current energy price shock is similarly fraught with uncertainty. How long will oil prices remain high? How strong will the transmission effect on core inflation be? The answers to these questions will directly determine the direction of global monetary policy in the coming months.

ACE Markets concludes that the most likely message central banks are conveying to the market this super central bank week is a "cautiously hawkish" tone: remaining highly vigilant about inflation but making no explicit commitments regarding future interest rate moves. This seemingly contradictory stance precisely reflects the high degree of uncertainty in the current macroeconomic environment. Investors need to carefully listen to every nuance in the policy statements, because this time, the central banks' art of balancing will truly be tested—not only between inflation and growth, but also between traditional financial logic and emerging market realities.

ECN account vs. STP account: Which should I choose? And how do I file taxes after making a trading profit?

Mon, 27 Apr 2026 10:11:22 +0800

When choosing a CFD trading platform, account type selection is often the first critical decision faced by advanced traders. Different account types directly impact trading costs, execution speed, and the overall trading experience. ECN (Electronic Communication Network) accounts and STP (Straight Through Processing) accounts are two mainstream execution modes, each with its own characteristics and suitable for different trading styles and strategies. Understanding these differences helps traders make the most suitable choice based on their trading frequency, risk appetite, and capital size. ACE Markets offers a variety of account options designed to meet the needs of different types of traders, ensuring that every client can find a solution that matches their trading goals.

With increasingly stringent global financial regulatory environments, compliance has become a crucial factor that cannot be ignored when choosing a broker. KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures are not only legal requirements but also the cornerstones for ensuring market integrity and the safety of user funds. At the same time, the tax liabilities arising from trading profits cannot be ignored, especially in countries and regions that emphasize tax compliance. ACE Markets strictly adheres to international anti-money laundering regulations, holds top-tier regulatory licenses from the UK's FCA and Australia's ASIC, and is committed to providing global traders with a transparent, secure, and compliant trading environment, ensuring the long-term stable operation of accounts.

　　ECN vs STP: Key Differences in Transaction Execution

ECN accounts operate by sending traders' orders directly to a liquidity pool, where they are anonymously matched with other market participants, including banks, institutional investors, and other traders. The key feature of this model is "no dealer intervention," meaning the broker does not act as a counterparty but rather as a bridge for information exchange. ECN accounts typically offer extremely low spreads because prices directly reflect market supply and demand, but a fixed commission is charged. This model is ideal for high-frequency traders and scalping strategies, as even small spread savings can accumulate into significant cost advantages over a large number of trades.

STP accounts aggregate traders' orders and forward them to one or more liquidity providers (usually banks or other large financial institutions) for execution. While STP is also a type of straight-through processing, in some cases, the broker may act as an internal matchmaker, especially when liquidity is insufficient. STP account spreads are typically slightly higher than ECNs, but generally do not charge separate commissions. This model is suitable for various trading styles, especially for traders with longer holding periods who are less concerned about small spread differences. ACE Markets' account type design fully considers the characteristics of both models, providing a clear path for different types of traders.

　　Account Selection Guide: Match Your Trading Style

If you are a high-frequency trader seeking maximum execution speed and minimal trading costs, then an ECN account may be your best bet. ECNs offer deep liquidity and near-real-time execution prices, minimizing slippage and reducing trading costs through low spreads. These subtle advantages are crucial for day traders or scalpers. However, the commission structure of ECN accounts means that even in inactive markets, frequent opening and closing of positions can incur cumulative costs, so it's essential to ensure your trading volume is sufficient to cover these fees.

Conversely, if you are a long-term investor or a mid-term trader who values trading stability and convenience, an STP account may be more suitable for you. STP accounts eliminate separate commission fees; trading costs are primarily reflected in the spread. For trades with longer holding periods, this spread cost is relatively fixed and easier to estimate. Furthermore, STP accounts typically have less stringent requirements for minimum deposits and holding periods than ECN accounts, providing a flexible option for users with smaller capital or lower trading frequency. ACE Markets' diverse account structures aim to allow every trader to find a trading environment that perfectly suits their style.

　　Compliance Assurance: The Deeper Significance of KYC and AML

KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures are an integral part of modern financial services. These procedures require brokers to verify a client's identity, financial situation, and source of funds, aiming to prevent financial crimes such as money laundering, terrorist financing, and fraud. For users, this may mean submitting documents such as identification, proof of address, and statements explaining the source of funds when opening an account. While the process may seem cumbersome, it actually forms a strong defense for the security of users' funds. Verification ensures the uniqueness and legitimacy of the account, effectively preventing criminals from impersonating others to conduct transactions.

The establishment of the AML compliance system not only protects the integrity of the entire financial system but also directly safeguards the interests of legitimate users. It ensures a fair and transparent trading environment and prevents illegal activities such as market manipulation. When users find their accounts undergoing rigorous review, they are actually enjoying the protection provided by the AML system. As a strictly regulated broker, ACE Markets rigorously implements KYC and AML procedures, which is not only a legal obligation but also a commitment to the safety of client funds and the platform's reputation. This rigorous approach provides a solid guarantee for clients' long-term stable trading.

　　Tax Planning: Fulfilling Your Legal Obligations

Globally, profits earned through CFD trading may be considered capital gains, thus subject to applicable income tax or capital gains tax. Tax laws vary significantly from country to country, with differences in tax rates, tax exemptions, and reporting methods. For example, in some countries, profits from short-term trading may be taxed at the standard income tax rate, while profits from long-term holdings may enjoy a lower preferential tax rate. Therefore, traders cannot ignore potential tax liabilities. Accurately recording the profit and loss, date, and related expenses of each transaction is fundamental for future tax filing.

Tax planning is a highly specialized task involving complex laws and regulations and potential tax optimization strategies. Traders are strongly advised to consult a professional accountant or tax advisor before commencing trading or at the end of the year. They can provide personalized advice based on your specific circumstances and the tax laws of your country, helping you accurately calculate your tax liabilities and legally plan your taxes to avoid unnecessary legal risks due to negligence. ACE Markets is committed to providing transparent transaction records to facilitate clients' financial management and tax filing; however, we cannot provide tax advice. Professional consultation is your best option.

Say goodbye to complex candlestick charts: ACE Markets unlocks professional trading with a single click

Fri, 24 Apr 2026 10:24:34 +0800

In the ever-changing financial markets, many novices are often deterred by their inability to understand complex candlestick charts, grasp the principles of leverage, or bewilderment regarding spread costs. Trading often seems to be reserved for elites with advanced mathematical backgrounds, but this is not the case. ACE Markets aims to break down this cognitive barrier, simplifying complex financial derivatives trading into a simple "choice question" through an intelligent copy trading system. Here, you don't need to be a technical analysis master; you only need to know how to select the right "navigator" to easily participate in global markets.

I. Three Steps to Start Trading: Leave Professional Tasks to Professionals

Many beginners often ask, "I don't understand candlestick charts or leverage, can I really participate in trading?" The answer is yes. In the ACE Markets ecosystem, trading is no longer a solitary battle, but a journey guided by professionals. We've designed a super-simple, "foolproof" operating path for you: First, browse rigorously vetted global traders in the community; second, click the "Follow" button; third, set the percentage of capital you're willing to invest. With just these three steps, you transform from an observer to a participant, entrusting complex opening and closing decisions to market-proven professionals.

The core concept of this model is "leave the professional work to the professionals." You don't need to stay up late watching Federal Reserve decisions or sift through complex economic data for clues. When your chosen trader executes a buy or sell order, ACE Markets' system synchronizes this action to your account in milliseconds. All you need to do is monitor the overall performance and enjoy the convenience of technology. This not only lowers the barrier to entry but also makes trading as simple as using navigation software—set your destination, and let the system handle the rest.

II. Understanding Profit Differences: Transparent Cost and Profit-Sharing Logic

"Why did the trader earn 30% while I only earned 10%?" This is a common question among beginners when copy trading. This isn't due to hidden platform fees, but rather stems from the unique cost structure and profit-sharing mechanism of financial derivatives trading. First, Contracts for Difference (CFD) trading involves a "spread," the difference between the buy and sell prices, which is a cost that must be paid for each trade. Second, if you're following a high-quality trader, there's usually a "profit-sharing" mechanism. For example, the industry standard is for the trader to take 10% to 30% of the net profit as a performance fee. This is similar to hiring a fund manager who only receives a agreed-upon fee when they generate actual profits for you.

To illustrate this more clearly, let's take a simple example: Suppose the trader captures a market trend, resulting in a 30% profit for your account. However, because they incurred spread costs during the trade, and you need to share a portion of the profits with the trader as a bonus according to the agreement, your final return will naturally be slightly lower than the trader's gross profit. ACE Markets adheres to the principle of transparency; all spread costs and profit-sharing ratios are clearly displayed before each trade, with absolutely no hidden fees. This mechanism ensures that the trader's interests are highly aligned with yours—they only profit when you profit, thus incentivizing them to manage risk more prudently.

III. Intelligent Proportional Copy Trading: The Magic of Automatically Calculated Position Size by the System

Many beginners mistakenly believe that copy trading is simply a matter of "you invest 100, the trader invests 100," or worry about manually calculating complex contract quantities. In reality, ACE Markets uses an advanced "smart proportional copy trading" mechanism. You don't need to worry about how much capital one lot represents under current market volatility; the system handles all of that automatically. Its core logic lies in "proportion" rather than "absolute value." For example, when the trader uses 10% of their account's funds to open a position, the system automatically allocates 10% of your copy account's funds to execute a trade in the same direction, ensuring that both parties' risk exposure ratios are perfectly aligned.

This means that regardless of whether the trader's account is $100,000 or $1,000, and regardless of the size of your follower's capital, the system can adjust your order size in real time through algorithms. You no longer need to use a calculator to match leverage ratios or margin requirements; all mathematical calculations are automatically completed by the backend engine. This mechanism not only eliminates the risk of errors from manual calculations but also ensures consistent risk control. Through this intelligent allocation logic, even beginners with only a small amount of capital can accurately replicate the position management strategies of traders with large capital, truly achieving a "small but beautiful" following experience.

　　Risk Warning: Contracts for Difference (CFDs) and copy trading involve leverage, which may result in the rapid loss of principal. Past performance is not indicative of future results, and copy traders may incur losses. Please invest cautiously based on your own financial situation.

Dispelling the Fog: Building a "Trust Foundation " for Fund Security at ACE Markets

Thu, 23 Apr 2026 09:57:08 +0800

For newcomers to Contracts for Difference (CFDs) and copy trading, entering this field is often accompanied by fear of the unknown. Rumors of "scam platforms running away with funds" and "pump and dump schemes" make many hesitate before depositing money. At ACE Markets, we understand that trust is the threshold for trading, and security is the cornerstone of trust. This article will provide an in-depth analysis of the platform's security mechanisms, using transparent rules to eliminate concerns and allow you to focus on trading itself.

I. Regulatory backing and fund segregation: Your funds belong solely to you.

Many newcomers worry that platforms will abscond with their money, but this is actually a misunderstanding of fund custody mechanisms. Legitimate trading platforms never mix client funds with operating funds. ACE Markets strictly adheres to a fund segregation system, a core requirement of international financial regulation. Your deposits are not deposited into a company account, but rather held in an independent trust account at a top international bank. This means that even if the platform faces extreme operational risks, these funds are not legally company assets, creditors have no right to claim them, and your money remains in a bank vault, completely isolated from the platform's operations.

Beyond physical isolation, regulatory licenses serve as an "identity card" for verifying a platform's compliance. Being regulated by authoritative institutions means we must undergo rigorous financial audits regularly to ensure the clear and traceable flow of every penny. We reject any gray areas, demonstrating to users through transparent regulatory oversight that this is not a lawless zone. Choosing a regulated platform is choosing a "legal lock" to protect your funds, eliminating the possibility of misappropriation at its source.

II. Negative Balance Protection: The worst-case scenario is that you only lose all your principal.

"What if I encounter extreme market conditions? Will I not only lose all my principal but also owe the platform money?" This is the biggest nightmare for investors in high-leverage trading. At ACE Markets, we've introduced a crucial negative balance protection mechanism. Financial markets are volatile, and occasionally sharp "gaps" can occur, causing prices to plummet instantly. Without this protection, your account balance could turn negative. With us, the system automatically resets your account balance to zero; losses exceeding your principal are borne by the platform, and your maximum risk is limited to your invested capital.

This mechanism exists to eliminate your extreme fear of "margin call." It acts like a safety net, ensuring that you won't be burdened with debt due to a single uncontrollable extreme fluctuation while exploring the market. We advocate rational investment and never shy away from the risks of trading, but we will use technical means to draw an inviolable bottom line for you. Understanding this mechanism allows you to formulate trading strategies more calmly, without constantly worrying that the market will "backfire" on your personal assets.

III. The Truth About Copy Trading: Technical Replication, Not Asset Management

Many beginners mistakenly believe that copy trading involves transferring money to a so-called "teacher" to operate on their behalf, which is precisely the common tactic of "pig butchering scams." In ACE Markets' copy trading system, the flow of funds is completely transparent. This is not traditional managed account management, but a technology-based automated copying function. Your funds always remain safely in your own account. The trader's instructions are transmitted to your account via API and executed automatically by the system. The trader cannot directly access your funds, nor can they transfer the money away.

It's important to understand that copy trading doesn't mean transferring control of your funds. You can view the trader's real-time positions, historical performance, and risk data at any time, and you have absolute control—you can start copying at any time, or stop and withdraw funds at any time. This mechanism ensures that even if the trader incurs losses, only the funds in your account will be affected, and you will be subject to the aforementioned "negative balance protection." We encourage users to view copy trading as a learning tool, observing the operational logic of experienced traders while maintaining control over their funds, rather than blindly handing over their fate to others.