eToro - Practical examples of use
This is a brief summary of some of the functionality that the platform
eToro offers to their users. Some Forex trading examples that show how
easy is to trade foreign currencies with eToro are included, too. When
you enter the platform, you can choose between visual mode or so-called
expert mode. Since the last one seems to be a difficult thing, for
experts, let's explain it right now. You'll see immediately how easy and
intuitive are operations to buy or sell currency pair, with just a few
clicks.
Open position
The operations to do to open a position, indicated with red arrows and relative numbers, are described bellow.
- With a click of the mouse you select the line containing the currency pair you want to trade.
- In the field "Currency Pair" you choose to buy or to sell the pair.
In this example, the pair EUR/USD has been chosen to sell because is
considered that the price will drop.
- In the field "Trade Options" you choose the risk level, i.e. the
leverage, which ranges from 1 to 10 to 1 to 400. Than you choose the
amount to invest and you can also set the limits for "stop loss" and
"take profit". These limits may be set or changed at a later stage, as
we shall see in the next paragraph.
- When all the parameters are set, you should activate the exchange by
clicking on the green button "Open Trade". One window opens where you
should click "OK", to confirm the operation or click "Cancel" if you
change your mind and you don’t want to execute the trade.
Limits modification
Once the position is opened you can change one or both of the limits of
the same position: automatic closing of the position to limit the loss
(Stop Loss), if the trend is unfavorable to you, and / or self-closing
to take profit (Take Profit) when the price reaches desired level. The
picture above shows the procedure to change the limit "Take Profit". The
same would be a way to change "Stop Loss".
To change the value of "take profit" you must click on the relative
button (circled in red). One window will open where you can change the
value by changing the monetary amount of profit or by varying the rate
of closure. Of course, changing one of the two, the other value
automatically changes. Once you set the value to what you want, you must
press "OK" button to confirm the new limit.
Close the position manually
Having set the limits for the stop of the loss and the profit taking,
the position will close automatically if one of the limits is reached.
If for any reason you want to close the position manually, at any time
you can click with mouse on the button "Close" (circled in red) and then
click the button "OK" to confirm the closure on the new window that
will open. All closed position are moved in history field. To access the
history area, you must click the tab "History" (circled in yellow). You
can see the content of history field on the next image.
History
In the history area all closed positions are listed together with the
most relevant data of their performance. Reading from the left to the
right we have the number of operation, type of action (buy or sell) and
the currency pair involved, the opening and closing dates and times, the
amount invested and the capital managed with invested amount. Follow
the opening and closing rates, the spread and profits or loss achieved
with the percentage gain. The transactions are listed in chronological
order and higher listed are more recently executed. To return to the
previous screen click the tab "Open Trades", circled in yellow.
Examining better this window, as well as those listed before, you can
see tabs and buttons of other features that eToro offers to clients: the
online help with explanations about the meaning of the options, contact
the staff and access to the community and forum, where you can exchange
ideas and opinions with other users. You can also view the news in real
time from the world of finance and see the calendar of events important
for the evolution of the prices of currencies. The Forex tab are
relative to the currency pairs, while if you click Commodities tab you
can trade gold and silver. At the left of the lines with currency pairs,
there are buttons to access the charts that show evolution of the rate
of the currency pair we are interested in. It's circled in red the
button of the pair EUR / USD, and the relative graph you can see below.
Charts
The charts offer a range of options that allow you to adapt
representation to our personal taste. First of all, you can choose from a
basic chart or an advanced one. The last one is shown on the picture
below. As you can see, chart can be represented with traditional style
bar, lines or with the candles. You can choose the period of
representation from 1 minutes to 24 hours, various technical indicators
and you can also draw lines and curves. Among other things, the chart
can be saved on your personal computer for the future analysis. Moving
the mouse cursor over a candle you obtain all the characteristic values
for the relevant period; the rates of opening and closing, and the high
and low price of the pair.
The above chart also shows the high volatility of exchange rates in
certain periods. On the graph you can see the evolution of EUR / USD in
the day 27 July 2009, in periods of 15 minutes. Observe the difference
between the highest price on the chart of 1.4297 at 11:45 a.m. and the
lowest one of 1,4203 at 16:00 (4:00 p.m.). In about 4 hours, the price
was dropped by 94 pips. Exploiting this decrease would mean earning 94%
of invested capital, using the leverage 1 to 100, in just 4 hours and no
other exchange market may offer the opportunity to so high profit.
Visual mode
For completeness of presentation, let’s see briefly one of the five
visual modes that are available to the trader. After seeing how simple
is the use of the expert mode of the eToro platform, maybe wouldn’t be
correct to say that the visual mode is simpler. Indeed, it is just easy
as expert mode, but this mode is offered to meet the personal tastes and
to allow the user to choose the most suitable for him.
The window on the visual offers to client 5 different visual interfaces
called globe trader, forex trand, forex marathon, forex charts and forex
trade box. All interfaces are interactive, choosing one of the options
you pass the selection to another one. Since all is very simple and
intuitive, only the screenshot of the mode "forex trend" is shown here.
In the "forex trend", the image below, we
choose one of the currencies and the expected trend, rise or fall,
(column "currency direction"). For example, we have chosen the euro that
rise. The box that we chosen will indicate us, with an arrow, the next
column we must elaborate, in this case is "Against currency". Here we
indicate the currency that make pair with the euro: we indicate USD.
Having made this choice on the right we will see a series of boxes with
the amount to be invested and we choose one of those proposed. At the
end you can choose, at the bottom of the screen, the level of risk: 100,
200 and 400. Made all the choices we press the button "Open Trade" and
one window appears that allow us to confirm or to abandon the operation.
Really easy, isn’t it?
Once the position is opened you can change one or both of the limits of
the same position: automatic closing of the position to limit the loss
(Stop Loss), if the trend is unfavorable to you, and / or self-closing
to take profit (Take Profit) when the price reaches desired level. The
picture above shows the procedure to change the limit "Take Profit". The
same would be a way to change "Stop Loss".
To change the value of "take profit" you must click on the relative
button (circled in red). One window will open where you can change the
value by changing the monetary amount of profit or by varying the rate
of closure. Of course, changing one of the two, the other value
automatically changes. Once you set the value to what you want, you must
press "OK" button to confirm the new limit.
Close the position manually
Having set the limits for the stop of the loss and the profit taking,
the position will close automatically if one of the limits is reached.
If for any reason you want to close the position manually, at any time
you can click with mouse on the button "Close" (circled in red) and then
click the button "OK" to confirm the closure on the new window that
will open. All closed position are moved in history field. To access the
history area, you must click the tab "History" (circled in yellow). You
can see the content of history field on the next image.
History
In the history area all closed positions are listed together with the
most relevant data of their performance. Reading from the left to the
right we have the number of operation, type of action (buy or sell) and
the currency pair involved, the opening and closing dates and times, the
amount invested and the capital managed with invested amount. Follow
the opening and closing rates, the spread and profits or loss achieved
with the percentage gain. The transactions are listed in chronological
order and higher listed are more recently executed. To return to the
previous screen click the tab "Open Trades", circled in yellow.
Examining better this window, as well as those listed before, you can
see tabs and buttons of other features that eToro offers to clients: the
online help with explanations about the meaning of the options, contact
the staff and access to the community and forum, where you can exchange
ideas and opinions with other users. You can also view the news in real
time from the world of finance and see the calendar of events important
for the evolution of the prices of currencies. The Forex tab are
relative to the currency pairs, while if you click Commodities tab you
can trade gold and silver. At the left of the lines with currency pairs,
there are buttons to access the charts that show evolution of the rate
of the currency pair we are interested in. It's circled in red the
button of the pair EUR / USD, and the relative graph you can see below.
Charts
The charts offer a range of options that allow you to adapt
representation to our personal taste. First of all, you can choose from a
basic chart or an advanced one. The last one is shown on the picture
below. As you can see, chart can be represented with traditional style
bar, lines or with the candles. You can choose the period of
representation from 1 minutes to 24 hours, various technical indicators
and you can also draw lines and curves. Among other things, the chart
can be saved on your personal computer for the future analysis. Moving
the mouse cursor over a candle you obtain all the characteristic values
for the relevant period; the rates of opening and closing, and the high
and low price of the pair.
The above chart also shows the high volatility of exchange rates in
certain periods. On the graph you can see the evolution of EUR / USD in
the day 27 July 2009, in periods of 15 minutes. Observe the difference
between the highest price on the chart of 1.4297 at 11:45 a.m. and the
lowest one of 1,4203 at 16:00 (4:00 p.m.). In about 4 hours, the price
was dropped by 94 pips. Exploiting this decrease would mean earning 94%
of invested capital, using the leverage 1 to 100, in just 4 hours and no
other exchange market may offer the opportunity to so high profit.
Visual mode
For completeness of presentation, let’s see briefly one of the five
visual modes that are available to the trader. After seeing how simple
is the use of the expert mode of the eToro platform, maybe wouldn’t be
correct to say that the visual mode is simpler. Indeed, it is just easy
as expert mode, but this mode is offered to meet the personal tastes and
to allow the user to choose the most suitable for him.
The window on the visual offers to client 5 different visual interfaces
called globe trader, forex trand, forex marathon, forex charts and forex
trade box. All interfaces are interactive, choosing one of the options
you pass the selection to another one. Since all is very simple and
intuitive, only the screenshot of the mode "forex trend" is shown here.
In the "forex trend", the image below, we
choose one of the currencies and the expected trend, rise or fall,
(column "currency direction"). For example, we have chosen the euro that
rise. The box that we chosen will indicate us, with an arrow, the next
column we must elaborate, in this case is "Against currency". Here we
indicate the currency that make pair with the euro: we indicate USD.
Having made this choice on the right we will see a series of boxes with
the amount to be invested and we choose one of those proposed. At the
end you can choose, at the bottom of the screen, the level of risk: 100,
200 and 400. Made all the choices we press the button "Open Trade" and
one window appears that allow us to confirm or to abandon the operation.
Really easy, isn’t it?
In the history area all closed positions are listed together with the
most relevant data of their performance. Reading from the left to the
right we have the number of operation, type of action (buy or sell) and
the currency pair involved, the opening and closing dates and times, the
amount invested and the capital managed with invested amount. Follow
the opening and closing rates, the spread and profits or loss achieved
with the percentage gain. The transactions are listed in chronological
order and higher listed are more recently executed. To return to the
previous screen click the tab "Open Trades", circled in yellow.
Examining better this window, as well as those listed before, you can
see tabs and buttons of other features that eToro offers to clients: the
online help with explanations about the meaning of the options, contact
the staff and access to the community and forum, where you can exchange
ideas and opinions with other users. You can also view the news in real
time from the world of finance and see the calendar of events important
for the evolution of the prices of currencies. The Forex tab are
relative to the currency pairs, while if you click Commodities tab you
can trade gold and silver. At the left of the lines with currency pairs,
there are buttons to access the charts that show evolution of the rate
of the currency pair we are interested in. It's circled in red the
button of the pair EUR / USD, and the relative graph you can see below.
Charts
The charts offer a range of options that allow you to adapt
representation to our personal taste. First of all, you can choose from a
basic chart or an advanced one. The last one is shown on the picture
below. As you can see, chart can be represented with traditional style
bar, lines or with the candles. You can choose the period of
representation from 1 minutes to 24 hours, various technical indicators
and you can also draw lines and curves. Among other things, the chart
can be saved on your personal computer for the future analysis. Moving
the mouse cursor over a candle you obtain all the characteristic values
for the relevant period; the rates of opening and closing, and the high
and low price of the pair.
The above chart also shows the high volatility of exchange rates in
certain periods. On the graph you can see the evolution of EUR / USD in
the day 27 July 2009, in periods of 15 minutes. Observe the difference
between the highest price on the chart of 1.4297 at 11:45 a.m. and the
lowest one of 1,4203 at 16:00 (4:00 p.m.). In about 4 hours, the price
was dropped by 94 pips. Exploiting this decrease would mean earning 94%
of invested capital, using the leverage 1 to 100, in just 4 hours and no
other exchange market may offer the opportunity to so high profit.
Visual mode
For completeness of presentation, let’s see briefly one of the five
visual modes that are available to the trader. After seeing how simple
is the use of the expert mode of the eToro platform, maybe wouldn’t be
correct to say that the visual mode is simpler. Indeed, it is just easy
as expert mode, but this mode is offered to meet the personal tastes and
to allow the user to choose the most suitable for him.
The window on the visual offers to client 5 different visual interfaces
called globe trader, forex trand, forex marathon, forex charts and forex
trade box. All interfaces are interactive, choosing one of the options
you pass the selection to another one. Since all is very simple and
intuitive, only the screenshot of the mode "forex trend" is shown here.
In the "forex trend", the image below, we
choose one of the currencies and the expected trend, rise or fall,
(column "currency direction"). For example, we have chosen the euro that
rise. The box that we chosen will indicate us, with an arrow, the next
column we must elaborate, in this case is "Against currency". Here we
indicate the currency that make pair with the euro: we indicate USD.
Having made this choice on the right we will see a series of boxes with
the amount to be invested and we choose one of those proposed. At the
end you can choose, at the bottom of the screen, the level of risk: 100,
200 and 400. Made all the choices we press the button "Open Trade" and
one window appears that allow us to confirm or to abandon the operation.
Really easy, isn’t it?
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