eToro Shorting Guide

In this article, we take a look at one of the more underrated features of the eToro Shorting Guide. This is the ability to sell assets that you don’t actually own (on the condition that you will buy them back later at a lower price).

This allows traders to potentially profit from a fall in the value of an asset or instrument, something that could be particularly useful during periods of market volatility. The platform offers the ability to short a variety of instruments including stocks, indices, ETFs and commodities.

eToro Shorting Guide: How to Profit from Market Downturns

To make a short trade, simply select a stock or commodity from the list and click the ‘Sell’ button. You’ll be prompted to enter an opening price and a stop loss price, before selecting a ‘Sell’ order. You’ll then need to confirm the details of your trade and manage this position in your portfolio.

You can also use the ‘Stats’ tab on a trader’s profile to see how they are performing in real time. This will show you a number of key metrics such as their risk score, max drawdown and return on invested capital.

Before starting to invest in eToro it’s important to understand the risks involved and never risk more than you can afford to lose. In addition to this, it’s a good idea to familiarize yourself with the eToro platform by signing up for a demo account and experimenting with different strategies.