What is Stop-Loss?
(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.)
Why use Stop Loss?
eToro Stop Loss
Stop Loss in trading
Once the market moves against your favor in a trade, an automatic instruction to close it is sent. For example, if 1 share is purchased at 500$ with a stop loss of 400$ and the price falls to 399.99$ an automatic instruction is triggered and the stock is sold.
The maximum value of stop loss on the platform is 50% of the amount invested into a position, unless it is a long position with no leverage. These restrictions are implemented to limit the capital loss risks in case market suddenly starts to move unfavorably.
Once a trade is open however, these limits can be surpassed and your balance on the account will be debited, given there are sufficient funds available to keep the Maintenance Margin at the permitted level.
Trailing Stop Loss
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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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