eToro
By eToro
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Trading Basics – BUY and SELL Explained

Many clients have inquired about Stop Loss (SL) and Take Profit (TP) and I would like to take this opportunity to cover it in more detail. In this post, I will explain what it means to BUY and SELL on eToro, and when our positions are open what each column means to us and the trade.

When we open a BUY position, it means we are buying an asset from the Market. Therefore, when we close the position, we must SELL it back to the Market.

If we open a BUY position, we need to be aware of six main points in the open trade.

  1. The current rate showing is the SELL price.
  2. We must always take the spread into consideration.
  3. We can adjust the SL up to 100% of our investment without adding funds from our equity.
  4. We can adjust the TP to a minimum of 1 pip of the Market Price and unlimited maximum.
  5. The Stop Loss Price shown is the potential SELL price (Meaning the price to SELL back to the market).
  6. The Take Profit Price shown is also the potential SELL price.  (Meaning the price to SELL back to the market).

When we open a SELL position, it means we sell to the Market. Therefore, when we close the position, we must BUY it back from the Market.

If we open a SELL position, we need to be aware of six main points in the Open Trade.

  1. The current rate is now showing the BUY price.
  2. We must always take the spread into consideration.
  3. We can adjust the SL up to 100% of our investment without adding funds from our equity.
  4. We can adjust the TP to a minimum of 1 pip to the Market Price and unlimited maximum.
  5. The SL Price shown is the potential BUY price (Meaning the price to BUY back from the market).
  6. The TP Price shown is also the potential BUY price.  (Meaning the price to BUY back from the market).

We hope you found this guide helpful. Please contact customer service if you have any questions.

CFD trading. All trading involves risk. Only risk capital you’re prepared to lose. The information above is not investment advice.

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