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Wikitoro author Mike Druttman Written by Mike Druttman
Wikitoro fact checker Wikitoro Team Fact checked by Wikitoro Team
Updated Feb, 2024

To set a Stop Loss on eToro, open the relevant trade in your Portfolio and access the Edit Trade window. Select STOP LOSS and choose Set SL; then, determine your Stop Loss based on a market rate or specify a monetary amount by clicking on AMOUNT. Remember to click Update to save your setting.

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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.

 

Introduction: What is Stop Loss?

Stop Loss, or SL for short, is a tool that helps you manage risks in trading. It tells the platform to close your trade when a certain market price is reached, so you don't lose more money. Want to know how to use eToro stop loss feature? Keep reading this guide I made for you.

 

For US Traders: You Cannot Set SL Orders

For those trading stocks in the US, it's vital to be aware that Stop Loss orders are not available. This limitation restricts the tools traders in the US can use for risk mitigation specifically on eToro stocks.

 

Setting Up a Stop Loss on eToro

To establish a Stop Loss on the platform, follow these steps during the process of opening a trade:

  1. In your Portfolio, select the desired trade to access the Edit Trade option.
  2. Choose STOP LOSS followed by Set SL.
  3. Configure your Stop Loss based on a specific market rate. Alternatively, select AMOUNT to determine it as a monetary value.
  4. Feel free to modify the Stop Loss as the trade progresses. If needed, deselect the Stop Loss by opting for No SL.
  5. To finalize your setting, click on Update.

 

Choice: Limit or Amount?

When it comes to initiating an eToro Stop Loss, you're presented with two primary options. First, you can determine a specific rate at which your trade will close. Alternatively, you can set a precise loss amount, meaning your trade will be automatically halted once your losses reach this threshold. This flexibility allows you to customize your risk level based on market understanding and personal preference.

Setting eToro stop loss amount or limit

Setting eToro stop loss amount or limit

Take Note: Stop Loss is Optional

It's essential to understand that incorporating Stop Loss is entirely up to you. While it offers a safety net, you can very well proceed without it. Whether you're about to open a new trade or mulling over an active one, the choice to set a Stop Loss remains in your hands.

 

Remember: SL is Not Guaranteed

Stop Loss helps protect your trades, but it's not perfect. If the market changes quickly, the Stop Loss might not work at the rate you set. Instead, it could work at the next available rate. I saw this happen when I tried it during big market changes.

 

Final Word

In the end, Stop Loss is a powerful tool for traders, especially when the market doesn't go as expected. But using it well matters a lot. So, take the time to learn about it and use it smartly to keep your investments safe and maybe even grow them.

 

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.

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76% of retail investor accounts lose money