Entering the world of eToro’s CFD trading platform can be intimidating for beginners, but fear not! This comprehensive, step-by-step guide will teach you everything you need to know to make your first trade on eToro with confidence.
1. Selecting an Asset to Trade
Table of content
- 1. Selecting an Asset to Trade
- 2. Navigating the eToro CFD Trading Interface
- 😎 Pro Tip: Decisions, Decisions
- 3. Setting Parameters for a CFD Trade
- 📉 The Perks and Pitfalls of Stop Loss and Take Profit
- 4. Closing CFD Positions on eToro
- 🔴 Sealing the Deal: Closing a Position
- 🤔 Know When to Fold ‘Em: Closing Trades Wisely
- 5. Practice Makes Perfect: Using eToro’s Demo Account
- 🎓 Level Up: Becoming a Trading Pro
- eToro CFD Trading: • Learn more about eToro CFD Trading📝
- CFD Basics:
- CFD Trading Strategies:
- Advanced CFD Topics:
- CFD & Options Trading:
- More on CFD Trading:
- Disclaimer And General Risk Warning applicable and relevant to all platforms listed
- Author & Expert Trader - Financial Analyst:
Begin on eToro’s homepage and click on “Trade Markets” in the left-hand menu. You’ll be presented with a variety of assets to trade, including currencies, commodities, indices, stocks, and cryptocurrencies. For this example, we’ll use currencies (FOREX). Select “Currencies” at the top right of the screen, then choose the EURUSD currency pair. Click on the blue trade icon at the top right to continue.
Upon clicking the blue trade icon, the trading interface will open. Here, you can set the rate, either manually or by following the market rate. Toggle between these options using the “Rate” button on the right. Next, choose either the units or amount (toggle using the button on the right).
😎 Pro Tip: Decisions, Decisions
If you prefer to select the amount, the units will be calculated automatically, and vice versa.
3. Setting Parameters for a CFD Trade
At the bottom of the interface, you’ll find three parameters to configure: Stop Loss, Leverage, and Take Profit. Adjust your market exposure by selecting the appropriate leverage amount. Use the Stop Loss field to limit potential losses, as the position will automatically close when the specified amount is reached. Similarly, the Take Profit field allows you to automatically close the position when a certain profit is reached. Double-check your parameters and click on the blue “Set Order” button to place your order.
📉 The Perks and Pitfalls of Stop Loss and Take Profit
Stop loss and take profit orders help manage risk and protect successes, but be sure to carefully consider the risks before setting these parameters.
4. Closing CFD Positions on eToro
To close a trade, navigate to your asset portfolio by clicking “Portfolio” in the left-hand menu. Here, you’ll see all your owned assets. Click on the asset you wish to close.
🔴 Sealing the Deal: Closing a Position
In the individual asset view, close a position by clicking the red “close” button on the right side of the screen. This will open a separate trading interface, where you can see the amount you’ve invested in the asset and your current profit or loss position.
To close the entire position, click on the large red “Close Trade” button at the bottom of the screen. If you prefer to close only part of the trade, select the “Close only part of the trade” option. Keep in mind that partial closure is only possible when Stop Loss or Take Profit triggers haven’t been reached; otherwise, the position will close automatically.
🤔 Know When to Fold ‘Em: Closing Trades Wisely
It’s essential to monitor your trades and make informed decisions about when to close positions. Be sure to consider market conditions, your trading strategy, and risk tolerance before closing a trade.
5. Practice Makes Perfect: Using eToro’s Demo Account
Now that you know how to make your first trade on eToro, it’s time to put that knowledge into practice. Use eToro’s demo practice account to hone your trading skills and build confidence before venturing into real trading. This simulated environment allows you to test strategies, learn from mistakes, and gain experience without risking real money.
🎓 Level Up: Becoming a Trading Pro
As you practice with the eToro demo account, focus on developing your trading skills and understanding of the platform. Over time, you’ll become more adept at spotting opportunities and managing risk, setting you on the path to CFD trading success.
By following this step-by-step guide, you’ll be well on your way to mastering the art of trading on eToro’s CFD platform. Don’t forget to practice with the demo account and continually refine your strategies to achieve the best possible results. Happy trading!
eToro CFD Trading: • Learn more about eToro CFD Trading📝
CFD Trading Strategies:
Advanced CFD Topics:
CFD & Options Trading:
Disclaimer And General Risk Warning applicable and relevant to all platforms listed
- ► The information provided should not be seen as financial advice and is only intended for entertainment and informational purposes.
- ► Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.
- ► Financial asset providers listed offer a variety of financial products and services, including Stocks, Crypto assets, and CFDs.
- ► CFDs are complex instruments with high risk due to leverage. In fact a 76% to 86% of retail investor accounts lose money when trading CFDs. Make sure you understand how CFDs work and evaluate whether you can afford the potential risk of losing your money.
- ► Past performance does not guarantee future results. A trading history of less than 5 complete years may not be sufficient for making investment decisions.
- ► Financial asset providers do not constitute investment advice. The value of your investments can fluctuate, putting your capital at risk.
- ► Cryptoasset investments are highly volatile and may be unregulated in some jurisdictions. Consumer protection may not be available, and taxes on profits could apply.
- ► USA financial asset providers are not affiliated with any specific entity and do not offer CFDs. The platforms take no responsibility for the accuracy or completeness of the content in this publication, which is based on publicly available, non-entity-specific information.
► Trade with caution and be warned!