Do you often mistake 𝐨𝐩𝐞𝐧𝐢𝐧𝐠 𝐚 𝐒𝐄𝐋𝐋 position with 𝐂𝐋𝐎𝐒𝐈𝐍𝐆 a position? Well then, this post is for you.
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐚 𝐒𝐄𝐋𝐋 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧?
Trading on eToro is based on strategy and sentiment:
An investor who believes that the price of an instrument will rise in value will open a BUY position and, an investor who believes that the price of an instrument will fall in value will open a SELL position.
Opening a SELL position - also known as ‘short-selling’ or ‘going short’ - is therefore generally used either when markets are falling, or as a hedging tool. On the eToro platform, short selling is done using a Contract for Difference (CFD).
To open a SELL position, switch the toggle from BUY to SELL in the Open Trade window.
Like all trading/investing platforms, prices on eToro have a spread, meaning the BUY and SELL prices are different (the BUY price is always higher). When you open a SELL trade, it opens at the SELL price. The position increases in value as the asset’s price goes down or decreases in value as the asset’s price goes up. A SELL trade closes at the BUY price.
It's important to note that each BUY or SELL position is a separate transaction. 𝐈𝐧 𝐨𝐭𝐡𝐞𝐫 𝐰𝐨𝐫𝐝𝐬, 𝐨𝐩𝐞𝐧𝐢𝐧𝐠 𝐚 𝐒𝐄𝐋𝐋 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧 𝐨𝐧 𝐚𝐧 𝐢𝐧𝐬𝐭𝐫𝐮𝐦𝐞𝐧𝐭 𝐲𝐨𝐮 𝐚𝐫𝐞 𝐚𝐥𝐫𝐞𝐚𝐝𝐲 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐰𝐢𝐥𝐥 𝐧𝐨𝐭 𝐜𝐥𝐨𝐬𝐞 𝐲𝐨𝐮𝐫 𝐁𝐔𝐘 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧.
Each position is a unique investment.
𝐒𝐨, 𝐡𝐨𝐰 𝐝𝐨 𝐲𝐨𝐮 𝐂𝐋𝐎𝐒𝐄 𝐚 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧?
💻 From desktop
- Log into your account and click on "Portfolio".
- Click on the instrument line you wish to close.
- In the next window, click on the red X, and select "Close Trade" and your request will be executed during market hours.
- Click on the menu icon on the top left and hit "Portfolio".
- Tap on the instrument line you wish to close.
A pop-up window will show up with the option to "Close Trade" when you tap, or slide from right to left on the relevant position line.
*Currently, it's not possible to close positions in bulk. We're working on bringing the "close all" option back.
Still have questions? Watch the GIF 😝... Show More