eToro
By eToro
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Changes in margin/unit calculation

As of Wednesday, February 21st, we are applying a necessary change to the way the units and margins of trades are calculated, in order to better reflect the ownership of the underlying assets.

Background

Until today, the calculation of bought units is based on the bid price, regardless if the trade is buying or selling the underlying asset.

As a result, when you open a buy trade, despite the fact that the trade is opened with the ask price, the number of units you have is effectively higher than it should be because it’s based on the bid price (which is always lower).

What will be changing?

As part of our recent move towards investing in real assets (ETFs, cryptocurrencies, and soon stocks), we are applying the following changes in order to better reflect the asset ownership:

Units and margin calculation of buy Trades will be calculated based on the ask Price.

Units and margin calculation of sell Trades will be calculated based on the bid Price.

Please note: The new calculation will only affect trades that will be opened after the new version is live.

With regards,
The eToro team

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