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How to Sell on eToro: A Guide for Beginners
At a Glance
- On the eToro crypto exchange, users can buy and sell various cryptocurrencies, including Bitcoin, Ethereum, and XRP.
- To sell a cryptocurrency, users need to log in, go to the portfolio section, select the cryptocurrency they want to sell, and click on the red cross icon to close the trade.
- Buying crypto involves searching for the desired cryptocurrency, clicking on the trade button, entering the desired amount, and confirming the trade.
- For selling stocks on eToro, there are two options: short selling, where users sell a stock they believe will decrease in value and buy it back later, and closing a trade, which involves selling a stock owned by the user. The process for both options is explained in detail.
eToro is one of the leading trading platforms where users can invest in stocks, forex, and cryptocurrency. But if you’re new to the platform, it can initially be overwhelming. You might need some time to get used to the interface, understand how it works, and how you can sell stocks or crypto.
To make things easier for you, we have put together a step-by-step guide explaining exactly how to sell on eToro.
Can Users Sell on the eToro Crypto Exchange?
eToro’s crypto exchange allows users to buy and sell various cryptocurrencies. Apart from Bitcoin, you’ll find many other cryptocurrencies such as Ethereum, DASH, XRP, and more.
If you have any cryptocurrency on eToro, then follow these steps to sell:
- Log in to your eToro account.
- On the left side menu, click on Portfolio.
- From the list of positions in your portfolio, select the cryptocurrency you want to sell.
- Now at the right side of the screen, you will see a red cross icon. Click on it to close the trade.
When you’re ‘closing the trade,’ it means you are selling your cryptocurrency, and its value in fiat currency will be added to your eToro account. So selling cryptocurrency is super quick and easy on eToro.
If you don’t already own any cryptocurrency, you can first buy some on the eToro platform. To buy crypto, follow these steps:
- Enter the name of the cryptocurrency in the search box at the top of the page, let’s say bitcoin.
- Then, on the bitcoin page, click on the Trade button at the right.
- A pop-up window will appear. At the top, click on ‘Buy.’
- Enter the amount you want to buy.
- Click on Open Trade. Now you have successfully purchased bitcoin, and you will be able to see it listed on your portfolio page.
How to Sell Stocks on eToro
When it comes to selling stocks on eToro, things can get a little confusing because there are two different options on the platform—“short selling a trade” and “closing a trade.” Let’s first understand the difference between these options.
Short selling, or shorting, is the process of selling a stock you believe will soon decrease in value and then repurchasing it later. The main objective of short selling is to make a profit. The idea is to sell a stock hoping its value will go down so you can repurchase it later for cheaper, thus creating a net profit.
For example, let’s say you sell the stock of Company A for $100, then repurchase it when its value drops to $95. By doing so, you have made a profit of $5. The good thing about shorting is that you don’t even need to own the stock you’re trading.
When you short sell, you enter into an agreement with eToro to sell a stock you may not even own on the condition that you buy it back later. Of course, if your prediction is wrong and the value of the stock increases instead, you end up losing money. So there are risks involved in short selling, and you should be aware that there is a possibility you may have to suffer a loss.
Closing a trade is basically the process of selling a stock you own. When you close a trade, eToro pays you the value of the stock and buys it so you will no longer own the stock. Once you close a trade, you won’t see the stock in your portfolio anymore.
Keeping these things in mind, let’s go through the process of both short selling and closing a trade on eToro.
How to Short Sell on eToro
As we mentioned earlier, short selling means you sell the stock first and then buy it back later. So you’re selling a stock you don’t even own, which means there’s no point in going to the Portfolio section. Instead, follow these steps:
- On the search bar at the top, enter the company’s name or stock you want to short sell.
- Then on the stock page, on the right side, you’ll find a large blue ‘Trade’ button. Click on it to enter the trading interface.
- Now you’ll see two options at the top of the trading interface: ‘Buy’ and ‘Sell.’ Click on sell to short sell the stock.
- Next, enter the amount for which you want to sell the stock and click on ‘Open Trade.’
You have now completed the short-selling of the stock, but you also need to buy it back at some point. When you’re ready to repurchase it, follow these steps:
- Go to your Portfolio. You’ll see the stock you shorted there, so click on it.
- Then close the trade by clicking on the red cross.
- If the stock price does go down, the net profit will be credited to your account after closing the trade. But if your prediction was wrong and the stock price increased, you will incur a net loss after closing the trade, and the amount will be debited from your eToro balance.
Keep in mind that you can suffer huge losses when short selling, as it’s possible for some stocks to experience a massive increase in value. That’s why short selling is something better suited for experienced traders rather than beginners.
How to Close a Trade on eToro
We already explained that closing a trade means simply selling a stock you own. And the process of closing a trade is pretty much the same as the steps we explained earlier when explaining how to sell crypto.
- Go to your Portfolio. Select the stock you own and want to sell.
- Click on the red cross on the right side area to close the trade.
- A pop-up will open displaying the stock’s value and showing the profit or loss you’ll make by selling the stock.
- Click on ‘Close Trade’ to sell, and the money will be added to your eToro account.
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eToro is a huge trading platform with millions of users, and it’s a great way to get started with trading. You can also find educational material on eToro designed to help beginners learn more about trading. There’s a demo account feature where you can practice trading with virtual money.
It also helps to get used to the interface of the platform. By following our step-by-step guide, you should be able to sell crypto as well as stocks on eToro easily. And, of course, we advise all our readers to understand the risks involved in trading and always trade cautiously.
Frequently Asked Questions (FAQ)
How do I create an account on eToro?
To create an account on eToro, simply visit the eToro website and click on the “Sign Up” button. Follow the instructions to provide the required information and complete the registration process.
What is the minimum deposit required to start trading on eToro?
The minimum deposit required to start trading on eToro is $200. However, this amount may vary depending on your country of residence and the regulations in place.
Can I trade cryptocurrencies on eToro?
Yes, eToro allows trading of various cryptocurrencies such as Bitcoin, Ethereum, and Ripple. You can access the cryptocurrency markets through the eToro platform.
How can I deposit funds into my eToro account?
To deposit funds into your eToro account, log in to your account and navigate to the “Deposit Funds” section. Choose your preferred payment method and follow the instructions to complete the deposit.
What trading fees does eToro charge?
eToro charges spreads for trading various assets, including stocks, cryptocurrencies, and commodities. The specific spreads can vary depending on the asset being traded. Make sure to review the fee structure on the eToro website.
Can I copy other traders on eToro?
Yes, eToro offers a feature called “CopyTrading” that allows users to automatically copy the trades of other successful traders. You can browse through the profiles of different traders and choose to copy their trades.
Is eToro regulated?
Yes, eToro is regulated by multiple financial authorities, including the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC). These regulations ensure the safety of your funds and the integrity of the platform.
Can I use eToro on my mobile device?
Yes, eToro offers a mobile app that is available for both iOS and Android devices. You can download the app from the respective app stores and access your eToro account on the go.
How can I withdraw funds from my eToro account?
To withdraw funds from your eToro account, log in to your account and navigate to the “Withdraw Funds” section. Follow the instructions to initiate the withdrawal process. The funds will be transferred to your chosen payment method.
Is there a demo account available on eToro?
Yes, eToro provides a demo account option that allows you to practice trading with virtual funds. This is a great way to familiarize yourself with the platform and te