July 3, 2022

How to Sell on eToro

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eToro is a popular platform for trading stocks, ETFs, and cryptocurrency. But how do you sell on eToro? Find out all you need to know in this breakdown.

Looking to sell on eToro?

It pays to know how the process works.

In this guide, learn all about selling on eToro, including what you can and can't do and how to go about it.

Can You Sell On the eToro Exchange?

Yes, you can sell stocks and crypto on the eToro exchange.

However, selling can have a couple of different meanings on eToro. It's helpful to understand them all so you know exactly what you want.

Closing a Trade
When most people think of selling, what they're probably imagining is what's known as "closing a trade."

Closing a trade means selling an asset you've invested in on eToro. It's something you can do with both stocks and cryptocurrency.

Short Selling
"Selling" can also refer to short selling, or shorting. This is an investing technique in which you sell an asset, such as a stock, that you don't currently own, with the intention of buying it back later at a lower price.

Short selling is risky and can be more confusing than basic trading. Essentially, short-sellers are gambling that the price of the asset will go down - so that when they "buy" it later, they'll be doing so at a lower price than they paid when they "sold" it.

The risk lies in the possibility that the price of the stock goes up, instead of down. If the price is higher when you buy it than when you sell it, you'll be out the difference.

How to Sell on eToro

It's a fairly simple process to sell crypto on the eToro exchange, but it's important to note that there are some limitations.

It's possible to both sell crypto you own on the eToro platform (in other words, to close a trade), and to short crypto (according to eToro, short selling is available for all 1,200 instruments on the eToro platform).

Certain capabilities are limited by region, and you may not currently be able to short sell in some locations, such as the U.S.[1]

What can't you do on eToro?
You can't sell crypto you've purchased elsewhere, at least not yet.

Transferring crypto off of the eToro platform is done through the eToro Money crypto wallet.[2] While they may offer the ability to transfer crypto from the wallet to the platform in the future, it isn't available at time of writing.

That means if you buy crypto somewhere else—such as another exchange—you won't be able to sell it on eToro.

How to Close a Trade on eToro

Closing a trade on eToro is simple, and works the same for both stocks and cryptocurrency. All you have to do is follow these steps:

  1. Open up your eToro app or log in to their desktop site, and click the Portfolio button.

    This will show you all the assets you have on the platform, which you can also think of as open trades.

  2. Click on the stock or cryptocurrency you want to sell. It will display all of your open trades, listed as "actions," with the amount you purchased and your current profit or loss both as a percent and a concrete value.

  3. You'll see either a red X or a Sell button at the far right on the desktop site; on the mobile app, swipe left on the trade, and the X will appear.

  4. Click the red X or Sell button and a Close Trade window will appear.

    If you're sure this is what you want to do, click the Close Trade button, and your request will be executed during market hours.

It's also possible to manually close part of a trade on eToro by inputting the dollar amount you want to sell,[3] as long as your trade meets the minimum trade requirements.

How to Short Sell on eToro

Short selling is just as easy as a normal trade on eToro, just be aware of the potential for losses.

To short sell stocks or cryptocurrency on eToro, just follow these steps:

  1. Find the instrument you're interested in short selling, and open a trade.

  2. If short selling is available in your region, in the trade window, you should be able to change the Buy button to a Sell button.

    This will open a short position on that stock or cryptocurrency. This means the value of your position will go up as the price of the instrument goes down.

Remember: This function means you're selling stocks or cryptocurrency outside of your portfolio. It is not the same as closing a trade. Instead, you'll have opened a short position.

Closing your short position is much the same as closing any other trade on eToro, and can be done by following the steps mentioned above.

Fees to Look Out for

You'll want to take eToro's fees into account when deciding whether to sell your stocks or cryptocurrency. Frequent trading will incur more fees.

eToro has adopted a fairly straightforward fee structure. In addition to the market rate and a variable bid-ask spread, they charge a 1% transaction fee for both buying and selling on the exchange.[4]

That means if you open a trade on eToro, you'll be charged 1% when you make your purchase and when you sell the asset.[5]

Notably, both fees are reflected in your profit and loss indicator when you open a trade,[6] which makes it a bit easier to keep track of when you'll break even.

Bottom Line

As you can see, whether you're investing in stocks or cryptocurrency, it's a simple process to sell on eToro. Users can sell assets they've purchased on the platform, but not ones they've purchased elsewhere, as eToro doesn't currently support inbound transfers.

And if you feel confident that you understand the risks, short selling is another potentially valuable tool to add to an investor's kit, though it isn't available yet in all regions.

References

  1. ^ eToro USA LLC. Why can't I open a short (SELL) position?, Retrieved 5/13/2022
  2. ^ eToro USA LLC. How do I transfer cryptocurrency from the eToro trading platform to my eToro Money crypto wallet?, Retrieved 5/13/2022
  3. ^ eToro USA LLC. Can I close part of my trade?, Retrieved 5/13/2022
  4. ^ eToro USA LLC. How does eToro crypto pricing work?, Retrieved 5/13/2022
  5. ^ "Trading Fees": eToro, 2022.
  6. ^ eToro USA LLC. Why is there a loss as soon as I open a trade?, Retrieved 5/13/2022

Jeremy Harshman is a creative assistant at CreditDonkey, a personal finance comparison and reviews website. Write to Jeremy Harshman at jeremy.harshman@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.

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