By eToro

Some important changes to our trading system

Hi everyone,

We have recently made some significant changes to our trading system and we’d like to give you an overview of what those changes are and how they will be reflected in your daily trading activities.

These changes affect large positions of over 50,000 units and up (including copied positions for investors with copiers). In order to guarantee the solvency of such large transactions, we now hedge the position directly with our liquidity providers.

This has an affect on the price at which the transaction is opened. The price feeds you see across our platforms are also generated by our liquidity providers. Whenever you make a request to open/close a position, we send a fulfillment request to our liquidity providers who then look for a buyer/seller who will make the transaction with you.

In the market, at any point, there are buyers and sellers at different prices, and the liquidity provider looks for the best trade for you. If at your requested price there are no counterparties that are willing to complete your request, the liquidity provider moves to the next best rate, until the request is fulfilled. If the process takes longer than 15 seconds, the request gets cancelled by our liquidity provider.

What this means is that there can be instances when the liquidity provider can’t open your position at your requested rate and so your trade will open at a different rate that what you ordered. Most of the time this difference will be insignificant, but it can grow considerably in times of extreme volatility. For example, around economic announcements or data releases. This can also explain why you may sometimes get a notification that your position failed to open.

Please keep this information in mind, especially if you plan on opening a large position or if you have a large amount of copiers.

If you have any further questions please don’t hesitate to contact us.

We wish you happy trading!