Featured Site eToro Open FREE Account Visit Broker Trailing Stop Loss Trailing Stop Loss (TSL) is an exciting new feature we have added in response to ongoing feedback from our... more" />

eToro Trading Rules

Featured Site

Trailing Stop Loss

Trailing Stop Loss (TSL) is an exciting new feature we have added in response to ongoing feedback from our valued trading community.  A trailing stop loss sets the stop-loss order at a fixed amount of pips above or below the market price, depending on whether the position is SELL or BUY. As long as the market is moving in your favor, the stop loss will move with it, maintaining the same locked-in pip distance from the current market rate. As an example, if you set TSL for a BUY position, the stop loss will rise with the market in one-pip increments. This is why it’s called a ‘trailing’ SL; As the price rises, the stop loss rises with it. However if the market is moving in the opposite direction i.e if the price is falling, the stop loss will not change and a close order will be submitted when the stop loss rate is hit.

You have the option to set a Trailing Stop Loss as soon as you open a trade or at any time thereafter. All you need to do is click ‘Stop Loss’ in the Open Trade window and the TSL checkbox will appear underneath it. Every time you edit your Stop Loss manually while TSL is enabled, the pip distance between your stop loss rate and the current market rate will update accordingly.

For a Buy position, your TSL will rise with the price in 1-pip increments and for a Sell position, it will fall with the price in 1-pip increments. It is important to bear in mind that your stop loss will not change if the market is moving against you.

If at any point you decide to enable or disable TSL for an existing trade, simply click on the blue settings icon at the far right of the trade line in your Portfolio in order to bring up the Edit Trade window.

Blocked countries

Thank you for selecting eToro as you preferred trading platform.

Kindly note that due to changes in regulation conflicting with the trading laws, we can no longer legally offer eToro in the following countries:

Featured Site

  • North Korea
  • Myanmar
  • Syria
  • Cuba
  • Sudan
  • USA

* Please be informed that as per the AMF (Autorité des marchés financiers), we cannot accept any new customers who reside in Quebec.

We apologize in advance for any inconvenience you may have experienced due to this issue.

Where can I find my Position ID?

What is a position ID?

The position ID is a unique 8 or 9 digit number assigned to each trade for identification purposes.

Where can I find the position IDs of my open trades?

On the new eToro platform, the position ID for an open position can be found by clicking on the blue Settings wheel on the far right of the open trade in your Portfolio.

This will trigger the ‘Edit Trade’ pop-up window, at the bottom of which you will find the position ID:

Featured Site

In the WebTrader, the position ID can be found by hovering your mouse over the instrument in the ‘Open Trades’ section of your trading dashboard:

If you are using the iOS or Android app on your mobile, visit your Portfolio and click on the instrument of interest. Then, you will be able to view all currently open positions under that instrument. Click on the position in question, which will lead you to the “Edit Trade” screen. At the bottom of the ‘Edit Trade’ window, you will find the position.

Does eToro allow Scalping?

Under eToro’s Terms and Conditions policy (section 7.3 to be exact), scalping is considered a trading technique that is not allowed.

In order to learn more about this policy, please refer to our Terms and Conditions policy using the link below: http://www.etoro.com/terms-and-conditions/

How do I know which currencies are with variable spread and which with typical ?

Instruments with variable spreads will have a popup that will appear when opening the position that will notify you of that fact.

Risk Score explained

The risk score shows the risk the investor is taking, and is calculated using a special formula we have developed right here in eToro.

The score is calculated for each user from 1 to 10, where 1 is the lowest possible risk, and 10 is the highest possible risk.

Please visit the blog post for additional explanation.

For the recent changes, please click here 

What is Copy Stop Loss?

Copy Stop Loss (CSL) is a feature that gives users the ability to effectively manage your trades by providing risk management across each copy relationships based on real time Profit/Loss values. It is essentially an automated risk control system that will allow you to set controls for the entire copy relationship, as a dollar value.

For example:

Trader A is copied by Trader B with $100 and a CSL set at $50 – meaning Trader B does not want the copy relationship to lose more than $50 before CSL triggers. Trader A has 2 positions: one that has gained $10, another that just dropped to -$60. At that point, CSL triggers and both positions – the losing position, and the gaining position are closed and the copying relationship with that trader is disconnected.

Featured Site

The system will automatically set the CSL at 40% of your copy balance with any one copy relationship by default so that 60% of your investment will be protected by default. By putting in place a default CSL setting, we are making sure that you are less exposed to risk and that you can invest safely, knowing that a good portion of your investment is guaranteed to come back.

What is Take Profit?

A Take Profit order is an order to close a trade when the market moves a specified amount in favor of the position.Take Profit helps you to ensure the profit in case the market moves the way you expected. You are able to adjust your take profit rate according to the position rate or to an amount.The position will then be closed in case of reached rate/amount.

What is Stop Loss?

A Stop Loss is a risk management tool, mandatory on every position to add protection to your investment. It is an adjustable order to close the trade when the market moves a specified amount against your position and help you minimize your losses in case the market moves in the opposite direction to what you expected.   You can set your Stop Loss according to a specific level in the market (Rate) or as a monetary amount, which is also shown as a percentage of your initial investment in the trade window. In normal market conditions, when the market reaches your requested rate and you have lost the predetermined amount, the Stop Loss order will trigger and automatically close your position.  However, the set Stop Losses are not guaranteed. During volatile periods when spikes, market gaps and slippage may occur due to market conditions, your Stop Loss may not trigger at your requested rate. If your set Stop Loss is not traded in the market due to to such an occurrence, it will trigger at the next available rate.  We do not compensate for these instances as we do not interfere with the market conditions or events. Please refer to section 4.4 in our terms and conditions for further details.

Can I trade options at eToro?

eToro Currently does not offer Option trading.

We do offer Forex, Commodities and Indices.

For more information regarding our trading features, please visit: http://www.etoro.com/about-us/trading-features.aspx

What are the market hours? What does responsible trading mean?

Responsible trading means trading with Low to Medium leverage, and trading with only 20% or less than your account equity.

In your Webtrader account you can find a “Trading” Tab. This tab is divided into two categories:

Leverage: This limits the leverage you can use in your account to 1X50.

Trade Risk: This limits you from opening a single trade with over 20% of your equity on a single trade.

We highly recommend using our responsible trading features to minimize risk and exposure in your account.

Please note you can disable these features by checking the boxes in your account settings.

Featured Site

Can daily rollover fees change?

Rollover fees/credits change from time to time based on global market conditions.  When this happens, we will implement the changes. We encourage you to keep up to date with the current rollover fees/credits by checking our fees page. (Please note, that fees may change without advance notice).

What is a Pip?

A ‘pip,’ or a ‘Percentage in Point,’ is a single unit of the measurement of the movement of one currency in relation to another. One pip refers to the very last digit of a currency price.

For instance, the rate of EUR/USD is 1.3365, and a one pip movement would be 1.3366.

The major currencies are traditionally priced to four decimal places, and a pip is one unit of the fourth decimal point: for dollar currencies this is to 1/100th of a cent.

It is the smallest price change that a given exchange rate can make.

What is a spread?

The spread is the difference between the bid (sell) price, and the Ask (buy) price (it is the commission the broker charges on every position).

For example, if the bid is 1.2636 and ask price is 1.2638, the Spread is the difference between the two -2 pips.

How can I calculate the Rollover / Weekend Fees?

Starting June 15th 2014, all Carry Over Weekend fees, as you know them, were cancelled and instead, we have introduced a new fees model – Overnight Rollover.

Besides the obvious change of paying a daily fee rather than a weekly one, there’s one more important change you need to be aware of:

With Overnight Rollover fees, the fees are charged according to the direction of a given position (different fees for buy and sell positions, even if they’re on the same instrument) and in some instances, this means that you can get some money back.

When opening a new position in the WT, you will be presented with Daily fees. Please click hereto see the current fees (Please note that fees may change without advance notice).

You can also use this calculator to understand the fees before:

http://www.etoro.com/en/customer-service/fees/feescalculator

For more information, click Here.

What are CFD’s?

CFD stands for Contract for Difference.

CFDs are specialised and popular Over The Counter (OTC) financial products that allow traders to easily take broad market positions in a variety of different financial markets.

This allows trading indices, commodities and other instruments without actually buying all the stocks of a specific index or physical commodity.

What spreads does eToro offer?

Please refer to the link below in order to see eToro’s typical spreads:

Featured Site

www.etoro.com/about-us/fees.aspx

Why should I trade with eToro?

eToro is an online financial trading platform and community unlike any other. Aside from our unbeatable trading conditions, it’s our innovative platform that will really knock your socks off.

If you’re new to financial trading you’re sure to get a kick out of our amazing trade visualizations, and you might just end up picking up some trading skills as you go along. We then apply the same simple and innovative approach to our advanced trading interfaces, chock full of all the trading tools a professional trader may need. The end result is that whatever your experience in trading may be, you’ll find the eToro platform inventive and easy to use.

What does the equity represent?

The Equity represents the state of your account if you were to close all of your open positions. It includes the account balance + used margin + unrealized profits and losses.

The ‘used margin’ is the allocated or invested funds being traded in open positions, or in pending orders.

Please note, the Equity does not include deductions due to spread.

Cash equity, on the other hand, is the total value of the unrealized real funds.

What is margin?

Margin is leverage expressed in percentage terms; for example if the leverage level is X400 margin will be 1/400=0.25%. Margin amount is the used margin in Dollar terms for the specific position.

For example if the position size is $10,000 the used margin will be $10,000X0.25%=$25 Used Margin.

Does instruments with variable spread mean you are making more money from me as a user?

We are charging variable spreads because that is the way we are charged as we work with the interbank. With that in mind, the change to variable spreads that applies here has nothing to do with a desire to “make more money” as a company,but instead has everything to do with eToro empowering its users to enjoy more volatile currencies and a larger instrument selection in general.

How much does eToro charge to carry a trade over the weekend?

Beginning June 15th 2014 we have implemented a new Fees structure, switching from Over the Weekend Fees to the industry standard of Daily Rollover Fees/Credits .Overnight Rollover fees are the industry standard, and better reflect the supply and demand forces driving the market.With Overnight Rollover fees, the fees are charged according to the direction of a given position (different fees for buy and sell positions, even if they’re on the same instrument) and in some instances, this means that you can get money back.

There is no rollover charged or credited for Saturday and Sunday, the fees for these two days are made up on Wednesdays.On Wednesday you will be charged or credited the regular fee multiplied by 3.

Questions and Answers:

1.  Will I be charged the new overnight fees on positions that I have opened prior to this change?

Yes.  We will stop charging the Carry Over the Weekend fees that currently exist and will begin charging the daily overnight fees.  Therefore, any position carried over from June 16th, will be charged an overnight fee. 

Featured Site

2.  When will the overnight fees be charged?

The fees will be charged at 17:00 New York time (21:00 GMT). The fees will be charged for any position open at this time.

3.  How will I be able to see the overnight fees that will be charged?

You will be able to see the complete list of fees that we charge in the fees section of our     website.  Additionally, when you manually open a position, it will show in the confirmation window that opens prior to placing the trade.

4.  Are there overnight fees on commodities, stocks, or indices?

We are only charging overnight fees on our real-time instruments which include currencies, commodities and indices.  Currently, we are not charging overnight fees on Stocks.

5.  How will I be able to see how much I received or paid?

You will be able to view the fees and rebates in your account statement

6.  Will you be taking the overnight fee from the position or from the account balance?

For manual traders, we will be taking the overnight fee from the account balance.  For CopyTrade position, we will be taking the fee from the available copy balance.

7.  What if I do not have enough money in my account balance?

The system will charge the fee from the balance as detailed in question #6.  If you do not have available funds, it will create a negative balance.

8.  Will I be able to carry my trade over the weekend with 1:400 leverage?

Yes

9.  Will I be able to carry my trade overnight with 1:400 leverage?

Yes

10. Are Rollover fees subject to change?

Yes.  As market conditions change, we will evaluate if changes need to be made to the fees that we charge.  The full list of up to date rates can be consulted on our Fees page.

11. How will I be charged for positions left open over the weekend?

As there is no rollover charged or credited for Saturday and Sunday, the fees for these two days are made up on Wednesdays. Thursday and Friday rollover fees will be charged as usual.

12. How can I estimate the fees I will be charged?

We have created a dedicated Fee Calculator to help you calculate the estimated fee you will be charged.

So if the spread is variable, how will I know what spread I will get?

The idea behind a variable spread is that it cannot be fully predicted when you open a trade. In some instruments, the difference might be more noticeable than in others. However, in general, there is no guarantee regarding the spread when a trade is closed. With that in mind, we always seek to provide the best rates available for our customers, and we work only with top tier liquidity providers for this very reason.

How is the spread calculated?

Spreads are calculated according to expected volatility and liquidity on each currency.

What is Forex?

Forex is a common abbreviation of Foreign Exchange (also referred to as FX) and it is today the largest financial market in the world, with a turnover of over $3 trillion a day. Speculators in the Forex market trade one currency for another and make a profit off of this transaction.

The Forex market appeals to a wide range of financial traders because the market is open 24 hours a day, five days a week, and because the relatively limited amount of currencies makes it possible for even the most novice trader to grasp market fluctuations.

You must be 18 or older to trade in the Forex market.

With variable spread instruments, how do I decide how to set by SL/TP when rates are variable?

We cannot advise you on how to trade and of course, cannot commit to a certain methodology that will promise the Stop Loss will never be hit. However, we can share a known thumb rule from trading practices. Keep in mind it comes without guarantees:  We suggest setting the Stop Loss far from the market by at least 4 times larger than the typical spread. So, if the spread is 10 pips place it at least 40 pips away from the current rate.

Will you be limiting the leverage with variable spread instruments?

Yes.We will be limiting the leverage on variable spread instruments only as they are due to the higher risk level associated with them.We chose to do so, in order to provide you with a safer, more controllable trading experience.

With variable spread instruments, will the SL/TP be adjusted automatically as the spread moves?

No, unfortunately not.

Featured Site

As eToro does not make decisions on your behalf, we cannot provide such a service.

Will variable spread instruments remove the daily rollover fees?

No. Variable spread are not related to Rollover Fees.

Does variable spreads contract have an ending time?

No, variable spreads are not time limited.

Are variable spreads unique to eToro or available across the industry?

Variable spreads are not unique to eToro. Variable spreads are an industry-wide practice. Some brokers and banks use averages or typical spreads, but generally variable spreads are received in this manner from the intermediary bank.

Comments are closed.