One of the most effective ways to start social trading on eToro is by borrowing and shorting other traders’ positions. This strategy allows you to profit from the actions of others and is an excellent way to get your feet wet in social trading. You can borrow trades from other traders by following their careers and profiting from wins or losses. To borrow a business, you need to click on the ‘Borrow this trade’ button, which will prompt how much you want to borrow. You can also short trades with other traders on eToro – this is when your profits are limited to the amount of money you put up at the beginning of the work.
It can be hard to know which trades make sense for particular market sentiment if you are new to trading. Social trading on eToro makes it simple because all the information you need is right here.
Social Trading on eToro: Understanding Sentiment
Social trading is based on what other traders are doing with their positions. On the eToro review, you can read about the sentiment of a market and see other traders’ positions for the same assets. You can find facts and figures about emotion displayed in several places in eToro.
Inside each asset page, you will find numbers indicating the number of traders buying or selling a position. The buy/sell numbers are called ‘volume,’ showing how active traders are for that asset. Similarly, you will also find the number of traders who ‘own’ a specific position in a purchase on an informational page like the one above. When traders buy shares in an investment fund, they place their funds into that position even though they did not pay for it directly themselves. These figures give you an excellent basic understanding of sentiment towards an investment listed on eToro – and this information helps you make better decisions when entering your trades.