The management of trades in the eToro WebTrader
In this second part of the lesson dedicated to the WebTrader we deal with the section where the user can monitor his trading orders, manage the investors added on his people-based portfolio, and in general monitor his capital.
The tabs of the eToro WebTrader
The first section is related to the trading orders and the the management of traders, and is composed of 4 tabs:
- Open positions
– Open Trades Tab
It’s the most important tab, because here you can find the list of all the positions opened by you or by another investor through the Copy Trading function, that are still in the market at that time.
The positions opened by you are set out individually, one per line. Those opened by the traders you are copying, however, are grouped in one line with their name and their photo. It shows the cumulative data of their operations, which you can access by expanding the list by clicking on the small triangle next to their photo or on the photo itself.
Within the Open Trades section there are a number of columns:
Action: for the single open positions (opened by you or by the investors you are copying) you can see the name of the underlying, with the relative image, and the sign of the operation (if buy or sell). With regard to the investors you are copying, instead, you can see their username and their image.
Amount: the capital currently invested, therefore in the market, for the individual transactions. For the investors, instead, it’s the amount of capital invested in the market for the total of their operations.
Units: in the case of an investment it shows the value of the underlying in the market, which is the actual size of your operation. The result is obtained by multiplying the amount invested for the leverage. In the line related to the investor it shows the total capital that you have invested to replicate his operations.
Open: visible only for the individual transactions, it shows the opening price.
Current: the market price of the underlying at the moment you’re monitoring the individual open transaction. For the line of an investor, instead, you can see the amount of capital available for replicating other operations, net of the performance achieved by the open transactions. Obviously, if the positions in the market are in profit, the capital is higher than the one you assigned.
Arrows: These values indicate the deviation in pips of the market price compared to the opening price. These values can be positive or negative and are indicated only for the single transactions.
Stop loss: visible only for the single transactions, it shows the self-closing price of the position in the event of adverse market movement.
Take Profit: it indicates the closing price of the position in the case of correct movement of the market, so if your prediction was proved correct. Even this value is only visible for the line of the single operation.
Profit: it indicates the capital you are gaining or losing at that precise moment. In the line of a transaction this value refers to the individual position, while in the line of an investor the value is given by the sum of all his open positions.
Gain (%): as above, it indicates the profit or loss, but in%.
Close: for the individual trades you have the opportunity, by clicking on the “x”, to close the position at the market, realizing the profit or loss. For the investor, instead, it closes all the transactions opened by him still in the market at that time.
Tools: only for investors, it offers the chance to change some settings regarding the replication.
Add funds: you can increase your exposure on the individual investor, increasing the money invested on that particular trader, always within the maximum limit of 40% of your total capital.
Remove funds: unlike before, you can also decrease the exposure on the individual investor.
Suspend copying: To stop the Copy Trading function for that investor.
Set Copy Stop Loss: it’s used to change the value of maximum loss on the entrusted capital (preset to 40%) that you are willing to endure. Reached the set value, the function of copy trading on that investor will be suspended.
You can decide to change the view of the open trades by clicking in the upper right on “Markets” (the symbol of an arrowhead equity).
With this view, the positions, both personal and copied, will be grouped by underlying (for example, all the transactions in EUR/USD, all those in Apple, all those in gold, etc). It’s a very useful mode, especially when you are having many open positions in the market, to understand where you are more exposed, and where the greatest threats may come, in order to be ready to take action.
In this case, you will have these details:
Total amount invested: the total amount of capital invested on that single underlying.
Net units: the amount of capital invested multiplied by the leverage indicates the real countervalue in the market for that underlying.
Break-even point: considering all the open positions in the market on that single underlying, this value identifies the average purchase price, that price at which the sum of profits and losses of all the positions would be zero.
Current, Arrows, Net Profit and Income (%) have already been described in the above lines, the only difference is that here are referred to the overall underlying.
– Orders Tab
The Order Tab shows all the pending orders entered by you or by the investors you are copying.
In practice, the transactions that would be executed in the market only on the occurrence of a particular price condition.
The remarkable fields, different from the Open Trades tab, are:
At Rate: the entry level price, at which the order would be automatically executed.
Arrows: contrary to what is described for Open Trades, as we are dealing with a pending order, this field takes on a different value, indicating the difference between the current price and the entry price, that is the order activation price.
Date and time: they indicate the time when the order was entered.
– History Tab
In this tab you have access to the details of all the closed transactions.
You can filter your search at the top right, by selecting from the drop-down menu a reference period among those proposed. You can also decide whether to have a “Flat View” or what they call a “CopyTrader view”. Let’s see the differences in detail.
It’s the most canonical of the views. With this view you’ll get the list of the transactions of the period you selected, but at most of the last 100 (one of the main problems of eToro). For each transaction, you have the following details:
Closing date (GMT): the date and time when the transaction has been closed, taking as reference the GMT time zone (Greenwich Mean Time).
Closed By: it indicates how the transaction has been closed, and since there are various methods, there are also various abbreviations:
- M: “Manual” closing, you find it only in the case of transactions opened by you;
- C: it stands for “Copy” and corresponds to the replication of a manual closing made by the investor;
- TP: it stands for “Take Profit”, when the transaction has reached the preset level of profit;
- SL: it stands for “Stop Loss”, when the transaction has reached the preset level of maximum loss;
- CSL: it stands for “Copy Stop Loss”, when the transaction has been closed for reaching the maximum loss on the equity you have set for that investor.
Action: the sign of the transaction and the underlying.
Copied Name: the name of the investor from whom the transaction has been copied, if the field is empty is because the transaction was managed manually.
Amount: the capital dedicated, i.e. invested, for that transaction.
Units: the usual countervalue of the underlying in the market, i.e. the amount multiplied by the leverage.
Opening price: the price at which the transaction was opened.
Closing price: the price at which the transaction was closed.
Net profit: capital earned or lost.
Gain (%): countervalue in percentage of the transaction in relation to the capital invested.
By setting the view of the history to “CopyTrader”, the view of the transactions changes significantly.
You can find the list of the transactions collected by the investor that generated them, including yourself of course in “Manual Positions”.
For each investor you can see the total amount invested, the countervalue in the market and the profit or loss resulting from the amount invested, both in capital and in percentage. Expanding the individual names still are reported the details of the transactions that have determined that total.
– News Tab
Last tab in this section is related to the news. For those traders who operate in different markets, having constant updates on the news it is certainly a valuable resource.
Within this tab eToro shows in real time all the news related to the markets and to the underlyings offered in its CFDs package.
For every news, in the title, usually it’s shown clearly the relative affected underlying, with date and time. By clicking on the title you can open the page of the related news.
The details of your capital
Last element within the WebTrader is the one related to the capital in your account.
It’s clearly a fundamental element and must therefore be best understood. Despite its understanding is quite intuitive, let me give you some details anyway.
Account balance: it’s the amount of capital in your account not used for investment, so available to be used to open new positions in the market, or to follow new investors or increase the share of the existing ones.
Invested Amount: it’s the capital invested in the various instruments at that time, being them transactions in the market or other investors.
Net Profit: it’s the current amount that you are gaining or losing.
Equity: the total coutervalue of your capital, is the total of “Account balance” plus “Invested Amount” plus or minus the “Net Profit”.
Server Date: it provides you with the date and time of the server you’re using.
Connected: it may seem a trivial item, but sometimes it isn’t, since it indicates whether you are connected to the server or not, and therefore whether the share values you are seeing are live and updated or not.
This double lesson, dedicated to the WebTrader trading platform created by the broker eToro, ends here.
We would like to repeat that, despite being a trading platform, to trade personally on the market is an extremely difficult and very risky activity, highly not recommended for those who don’t have the appropriate knowledge and experience.
For an advanced investor, for a Social Trader, the WebTrader is a useful instrument for managing his own people-based portfolio, i.e. the portfolio of traders he has decided to replicate.
We have often mentioned the term “portfolio”, isn’t it?
The next lesson is dedicated precisely to this important element.