How to Short on eToro

The How to Short on eToro positions has become a popular feature among traders using the eToro platform. This is because it enables traders to profit from declines in asset prices, rather than only benefiting from rising ones. However, despite its popularity, it is also important to understand the risks involved in short selling and how to avoid them.

When trading CFDs (Contracts for Difference) on eToro, you are only speculating on price movements and not owning any actual assets. This means that you can short stocks and other types of assets such as cryptocurrencies. In order to open a short position, you simply need to select the ‘Sell’ option instead of the ‘Buy’ option on the platform and then choose an asset that you think will fall in price.

You then need to enter a stop loss and a take profit level, which will determine how much you will make or lose if the trade goes against your position. Depending on the asset you are trading, there may be additional costs associated with shorting. These can include overnight and weekend charges.

Best Low Cap Crypto Gems to Watch in 2024

Adding short selling to your trading toolbox opens up a new world of possibilities, allowing you to profit from market corrections as well as potentially hedge against long positions in your portfolio. But remember that all trading involves risk, and it is essential to only trade with money you can afford to lose. The information in this article is not intended to be investment advice or a recommendation.