Equity sync is a service for Portfolio Management to ensure that the profit or loss experienced by the investment is reflected on the fund account in a fair and accurate way.
Why is equity sync necessary?
When an investor creates an investment in a trader's fund, the fund’s account is credited with an equal amount of virtual money.
When a trader makes trades on a fund’s account, the trades are allocated to investments in the fund. By design, the sum of all investments orders profit or losses should be equal to the profit or loss of fund orders. But minor deviations could occur because the fund and investment use different trading servers such as MT4 for a fund and MT5 for investment. Different servers calculate profits slightly differently and have different trade and equity precision (MT4 has 2nd decimal precision and MT5 has 4th decimal precision).
These small differences can cause the final profit or loss amounts to be different between the funds account and the investment accounts.
Note: If the investment experiences stop out its account is credited with NULL compensations.
In all listed situations, equity sync makes the funds account equity equal to the sum of all investments equities.
Equity sync compares the closed trades’ profits and losses of the fund’s account with the investment accounts, and collects NULL compensations on investment accounts (after stop out) and adjusts the fund’s account accordingly.