Reversals & flipping direction
What happens when the leader flips from long to short: why a follower closes and re-enters rather than reversing in a single order.
Updated
Sometimes you don't close a trade, you flip it: from a long position directly into a short position, or vice versa. When your leader flips direction, each follower automatically closes its current position and enters a new position in the opposite direction, ending up on the same side as the leader.
Why does it close, then re-enter?
Most prop firms don't allow a direct flip, a single order that crosses your position straight from long to short. A reversal is completed in two steps: the follower first closes the existing position to flat, then enters a new trade in the opposite direction. This process is fully automated, so there is no need to manage it while focusing on your trading.
Check your firm's rules before relying on a one-order flip. If your firm's rules do not allow this, always close the position to flat before entering a new trade in the opposite direction.
Related
For the full copy path, see How copying works. For what happens when the leader closes out instead of flipping, see Follower protection.