Are you ready to take the leap and invest in the stock market? eToro has made investing more accessible than ever. Before investing any of your hard-earned money, you also need to know how to sell on eToro as well as some key terms.
eToro gives you access to commission-free trades on the stock market and has recently added Cryptocurrencies. Given the explosive growth of crypto in the last decade, eToro is a great platform to start investing in various financial opportunities.
Selling your investment is often a skill that new traders overlook. There is often an emphasis on getting in or buying into the stock market. There is a focus on finding and purchasing the next sound investment.
Selling your position on an investment is the essential final step of the investment profit. As an investor, you should always know how to sell an investment before you need to. There is nothing worse than missing out on a big payday because you were unfamiliar with how to sell on eToro.
I will provide a detailed explanation of the terms you need to know, how they may affect your trading decisions, and most importantly, how to sell your position on the eToro platform.
What is eToro?
eToro is a unique trading platform that incorporates a social element into investing. You could consider it the Facebook or Instagram of trading.
The platform went live in 2006, and now it is the most significant investment in the world with over 4.5 million users.
eToro gives you access to several unique social features. One of these features is the “CopyTrader.” CopyTrader allows you to view other users’ trading history, which includes profits or losses over any period.
If another trader is making solid investments, you can dedicate a certain amount of your portfolio to copy their trades automatically.
Another popular social feature is the “Popular Investors” program. This program rewards a user based on the number of people copying their trade, and popular investors receive a monthly commission based on the number of people that follow their trades.
Commission gives you an extra incentive to find the next excellent investment.
These unique features on eToro make it easy to learn the ins and outs of the stock market.
How to Sell on eToro
As I mentioned earlier, eToro allows you to trade stocks without commissions. A lack of commissions means that eToro will not take a percentage when you sell an investment. This is a significant benefit that not many investment platforms offer.
For the sake of this explanation, let’s assume that you purchased a position in TSLA (Tesla) earlier this month, and you noticed that you had made a decent profit.
Selling on eToro is straightforward. After using your credentials and logging on to the web or mobile platform, open your portfolio. Within your portfolio, select TSLA from the list of investments.
Next, eToro will direct you to a page with a red “x” on the bottom right side of the page. Click on the red “x.” Clicking on the x will open a pop-up page asking you to confirm that you want to sell your position.
The final step is clicking “Close Trade” on the pop-up page. Closing your trade will close your position and sell your TSLA holdings.
Make sure you double-check that you selected the right stock before closing a trade. Once you confirm the transaction on the pop-up page, there is no going back.
To summarize, here is how to Sell on eToro:
- Login to the website or mobile app
- Open your portfolio
- Select the investment you want to sell
- Select the sell action and close your position
Short selling or shorting is a tactic that many investors use. It is an excellent way to turn a profit when the market is volatile or down or to hedge your positions and diversify.
This strategy allows a trader to create a position that will increase in value if the price of an investment falls. You are predicting that an investment will decrease in value instead of increasing.
Short selling can take on different forms. Fundamentally, it is a contract between a trader and their broker (in this case, eToro). The simplest form of short selling is when a broker lends a specific investment (i.e., a particular stock or mutual fund) to a trader. The trader subsequently sells the asset at the current price.
The trader then holds onto the funds generated with the expectation that the investment will decrease in price. Once the stock falls in value, the trader then repurchases the stock at a lower price.
Upon completion of the loan period, the trader returns the investment to the broker but keeps the difference in value.
It is important to remember that the trader only makes a profit if the stock price falls. If the price increases, then a trader who short-sold or shorted that stock will lose money.
How to Short Sell on eToro
Shorting on eToro is straightforward. The trader opens a Contract for Difference (CFD) with eToro. A CFD outlines the agreement between the trader and the broker regarding the conditions of the trade and payment processing.
What to Do Next
Now that you have closed your position, what next? After selling a stock or mutual fund, eToro deposits funds in your account. You can invest this money in another investment on the platform or withdraw the funds from the platform.
If you withdraw money from eToro, it can take several days to transfer the funds to your bank account.
Now that you know how to sell on eToro, you are ready to jump into the world of investing and grow your net worth.
Remember that investing comes with financial risks, and there is no full-proof way of trading on any platform, including eToro. However, if you carefully observe the market and learn from other successful traders on eToro, you can invest successfully.