Selecting An Asset To Trade
We start off at the home page on the eToro platform. Go to Trade Markets on the bar on left to trade with CFD, this is where you can see all the assets that can be traded. The choices are currencies, commodities, indices, stocks, and cryptocurrencies. Here we use currencies (FOREX) as an example. Therefore, select Currencies on the top right of the screen to view all currency pairs. Then select the asset, EURUSD currency pair in this case, that you want to trade. Now click on the blue trade icon on the top right of the screen.
(NOTE: Before we continue, we have to give a disclaimer that the trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. CFDs are complicated instruments that are never guaranteed to provide you supplemental earnings. In fact, Around 67% of all retail investors experienced a loss while trading CFDs. Make sure to keep this in mind before attempting to use the eToro platform yourself. All the information found on this website is not official trading advice and all practices shown are referenced for the use of the Demo account only.)
eToro CFD Trading Interface
Clicking the blue trade icon opens the trading interface. The interface contains the rate, which can be set manually or can follow the market rate. This can be toggled using the “rate” button on the right of the field. The next parameter available is are the units or amount (can be toggled using the button on the right of the field). If you prefer to choose the amount, the units are calculated and vice versa.
The parameters for a CFD trade can be set at the bottom. There are predominately three parameters that can be set – Stop Loss, Leverage and Take Profit. You can adjust your exposure to the market by selecting an appropriate leverage amount. The stop loss field is used to limit your losses in a trade. If the price shifts in an unfavourable direction and the stop loss amount is reached, the position is closed automatically. Therefore, it is wise to think about the risks that you would like to take before filling this in. Similarly, the take profit field is used to book a certain profit and automatically close the position when an amount, that you fill in, is reached. Once all the parameters are filled in, check it. Then click on the big blue Set Order icon at the bottom to place the order.
Closing CFD Positions On eToro
To close a trade on eToro, you will have to navigate to your asset portfolio. You can do that by clicking on Portfolio on the bar on the left. Then clicking on the portfolio icon on top of the screen. You can see all the assets that you own in this view. Click on the asset whose position you want to close.
In the individual asset view, you can close a position by clicking on the red ‘X’ icon on the right side of the screen. Clicking on the icon opens a separate trading interface. On this interface, you can see the amount you have invested in the asset and the current profit or loss position.
The total is the sum of the amount and the current position. You can close the entire position by clicking on the big red “Close Trade” icon at the bottom of the screen.
You can close only part of the trade by selecting the “Close only part of the trade” option. It is to be noted that this is possible only when the Stop Loss or Take Profit triggers have not been reached. In these cases, the position is closed automatically.
Now that you know how to trade with eToro, be sure to put that to practice in using the eToro demo practice account.
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eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
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