What do I purchase when I open a position on eToro?
Some of the instruments on the eToro platform are traded as real assets, while others use CFDs:
CFD stands for Contract for Difference.
If you open a SELL (short) position or use leverage, you are investing via a CFD.
Commodities, indices and currencies are offered as CFDs.
Any CFD trade will be marked 'CFD' in the trade line.
If you open a non-leveraged BUY position on a cryptoasset, stock or ETF, you are investing in the underlying asset.
However, there are some cases in which real asset trading is not available and a CFD is offered instead. This depends on the eToro entity that is applicable to your account and the regulatory framework it follows, and in some cases, your country of residence.
For more information, see the following links: