User-Friendly Platform Educational Resources Social Trading Features
Wikitoro author Mike Druttman Written by Mike Druttman
Wikitoro fact checker Nick Zelver Fact checked by Nick Zelver
Updated Feb, 2024

This section provides an in-depth overview of the methodologies and terminology related to the trading functions on eToro. Designed to enhance your experience on the platform, this guide is an invaluable resource for both casual investors and those new to the world of trading.

If you're just starting out, don't worry – I've crafted this guide specifically with beginners in mind, ensuring it's straightforward and easy to comprehend. Continue reading to begin your journey into trading with confidence!

Trade with eToro!

76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 

The Mobile App

The eToro app is a user-friendly mobile application available for both iOS and Android devices. It mirrors the functionality of the web-based platform, with the key difference being its interface, which is tailored for smaller screens and touch-based navigation.

💾 Looking for a downlodable file?

Unlike traditional software, there is no downloadable executable file for the eToro app. Instead, it can be conveniently installed directly from the Google Play Store for Android users and the App Store for those using iOS devices.

 

Understanding Leverage in Trading

Leverage is a key concept in trading, particularly for those new to the field. It functions like a provisional loan, allowing traders to open larger positions in the market while committing a smaller amount of their own funds. When you apply eToro leverage, you effectively increase your initial investment, gaining greater market exposure.

This mechanism can significantly amplify potential profits if your trading strategy is successful, as it raises the value of your transaction. However, it's important to remember that while leverage can increase potential earnings, it also carries a higher risk of losses.

 

Mirroring Trades via Copy Trading

Their copy trading feature has rapidly gained popularity, particularly among novice investors. This tool enables traders to observe, replicate, and learn from the platform's most successful investors.

By browsing through the profiles of top traders, you can gain insights into their earnings, current positions, and strategies. This includes details like the amount of leverage they use, their target profits, stop-loss settings, and the timing of their trade closures.

In essence: eToro copy trading offers a practical way for new traders to engage in the market by emulating the approaches of experienced investors.

 

The Take Profit (TP) Risk Management Tool

The eToro take profit feature is a crucial tool for traders, designed to automatically close a position once it reaches a predetermined profit level. This functionality is especially useful for those who prefer not to constantly monitor the market, as it allows for the automatic realization of profits at desired price points.

However, it's important to be aware that in volatile market conditions, Take Profit orders may not execute at the exact specified price level. This is a key consideration when setting up such orders, to manage expectations and potential outcomes effectively.

 

Stop Loss: Another Vital Tool

The platform includes a Stop Loss feature, a vital risk management tool that lets you set a specific price level at which a trade will be automatically closed to minimize potential losses. This feature is an automated order that activates when the market hits your predetermined price. It's available for all tradable assets on the platform, including stocks, currencies, and cryptocurrencies.

It's crucial to understand that the eToro stop loss order will only execute if the market price reaches the level you've set. If the market price never hits your Stop Loss threshold, your trade will stay open until you decide to close it manually.

 

The Spreads

eToro spreads crepresent the platform's charge, which is based on the difference between the buying and selling prices of an asset. This charge is a small amount added to your trading transaction. It's important to note that spreads vary per asset and are not fixed. They are subject to change based on market conditions, as eToro does not control market spreads.

📈 Volatility & variability

Additionally, some instruments are inherently more volatile, leading to more significant fluctuations in their spreads. This variability means that the exact spread at the opening and closing of a position cannot be precisely predicted. As such, you should be aware of these potential variations when engaging in transactions on the platform.

 

A Growing Trader Community

Today, the platform boasts over 34 million eToro traders  spanning more than 100 countries. These users actively engage in millions of trades each month, utilizing both the web-based platform and mobile applications.

The significant growth in their global client base can be attributed to the rising interest in financial markets among users worldwide. This expanding community reflects eToro's success in providing an accessible and user-friendly trading environment.

 

That Wraps It Up!

You have now reached the conclusion of this eToro trading guide. Armed with the comprehensive information provided, you should feel more knowledgeable and equipped to navigate the platform effectively.

This guide aims to empower you with valuable insights and strategies, enhancing your trading experience on eToro. As you apply this newfound knowledge, you are well-positioned to make more informed decisions and potentially leverage the platform's features to your advantage.

 

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. 76% 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. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. 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. Take 2 mins to learn more.

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.

Wikitoro author Mike Druttman About Mike Druttman

Mike Druttman, Head of Content at Wikitoro.org, has decades of expertise in marketing communications and business matching. Educated at the CAM Foundation and the Chartered Institute of Marketing, Mike has collaborated with businesses from the UK to Japan. He founded KEYZUNA, bridging Japanese businesses with global innovations. With a diverse background spanning high-tech to hospitality, Mike's articles at Wikitoro reflect his vast knowledge and unique perspective.

Read More
wikitoro author strip image

vectorRelated Articles

We've compiled a list of related articles

Step up your eToro game with our Copy Trading guide. Essential advice for beginners and seasoned traders alike.

Uncover the essentials of the eToro app. From testing with a demo account to app compatibility, our guide covers it all.

Unlock the secrets of leverage on eToro. This guide covers everything from CFD trading to smart risk management strategies.

Learn to maximize your trades with eToro's Take Profit tool. This guide shows you how to effectively use it to lock in profits on your positions.

Navigate eToro trading confidently with our guide on Stop Loss - the key tool for managing risks and protecting investments.

Demystify eToro's spreads: Learn about trading fees and spreads in our clear, concise guide, perfect for new and seasoned traders.

Unlock the potential of CFD trading on eToro with our comprehensive guide, covering essential tips, risks, and effective trading practices.

Step into eToro's trading community: Understand trader levels, follow top performers, and start your journey with our easy account setup guide.

76% of retail investor accounts lose money