Of all the companies and brokers who in recent years have implemented technologies and tools to support novice investors, eToro is definitely the one that has invested the most in the social aspect.
The Markets section, and all that until recently was called OpenBook, is the technology that eToro has developed to enable social interaction among users, joining all the investors of the community.
(Would you like to find out more about how eToro works? Read our eToro tutorial from the beginning)
To integrate the social activity with trading and investment, eToro is made up of several sections and sub-sections, ranging from the personal profile of a trader to that of the single underlying.
With our course we will review them all, to provide the knowledge and tools to make proper assessments and to fully exploit the potential of eToro.
In this lesson, we will focus on the eToro Markets section, what once was the OpenBook Markets. To access it you just need to click Markets on the menu in your profile on the left.
65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What is the eToro Markets section?
On the main page of the eToro Markets section you have access to all the underlying you can negotiate through this broker.
This eToro section has several functions, some practical and some social:
- It brings together all the underlyings on which you can invest with eToro through its CFDs;
- It gives you a chance to begin to operate on them;
- It brings together all the social activities of the eToro community concerning the underlying in question. You will see the opening and closing investors’ positions, the reasons, the percentage of profit or loss, you can read analyses on the underlying and any comments or like. In short, all the feed dedicated or that in some way relate to that particular underlying;
- It is one of the only two channels to access to the stock market, as these instruments have not yet been included in the WebTrader platform, except through its search function (as we shall see in detail in the next lesson).
How the eToro Markets section looks like
The Markets section has two main areas.
- The upper part, where you can find the menu with the four asset classes of the negotiable underlying instrument and an advanced research tool;
- The central part, where eToro shows various underlyings divided by category or in alternative way, such as the Featured or Trending markets. Anyway, the actual CFDs in this part are displayed randomly.
For each of these modules you can go into the full list by clicking on the button: “View all”.
– STOCKS section
In the Stock category of the eToro Markets Section you have access to all the available equity underlyings.
Given that the eToro offer really focuses on Stock CFDs, and since they are many, this is where the Advanced search tool seen before, or the filter shown in the image above (they are the same thing), become really useful.
You can search for stock CFDs using two main filters.
- The stock exchange where they are listed the below:
- New York Nasdaq
- New York NYSE
- The sector the firm or society belong from:
- Basic Materials
- Consumer Goods
- Industrial Goods
Selecting a specific sector or a specific stock market can see a list of all the underlying relative.
Eg. Selecting Frankfurt, eToro will list all the CFDs whose underlying assets are quoted and traded in the Frankfurt Stock Exchange.
As you can see from the image, the underlying assets are placed in a table with some columns, in detail:
Market: with the TICKER the share, that is the abbreviation of recognition, the company name and the logo of the same.
Change: it shows the variation in percentage and in pips of the underlying price in relation to its reference price. By default it displays the change of the last day (i.e. from the closing price of the day before), but clicking on it you can change and show also the last week or last month.
Alongside there’s also a chart of the time frame you are viewing.
Sentiment: the percentage of eToro investors and traders who at that instant are positioned Long or Short, i.e. buying or sellling, on that particular CFD.
Bid and Ask: the two best prices for buying or selling the CFD. Clicking on them you will open the pop-up for the order entry. We will see this part in a dedicated lesson.
Beside each stock CFD, but it will be the same for currencies, indices and commodities, you can find a button with the + symbol. Clicking on it you can add all the CFDs you want to your WatchList, so you can follow the progress of your favorite underlying directly from your profile, without having to come back here every time.
– CURRENCIES section
The Currencies category is as shown in the image. As you can see, the columns are exactly the same as stock CFDs, with the same data reported.
– COMMODITIES section
As with the other two, also for commodities you will land directly on the page that displays a list of all the negotiable underlyings, that in this case, at the moment, are only three, oil, gold and silver.
I will not describe the characteristics of the columns, since the available data are the same I have already described for the stocks.
– INDICES section
The indices offered by eToro through its CFD are many, but certainly not all. Anyway, the major, the most important and most famous are all present.
What type of trader are you?
66% of retail CFD accounts lose money
The underlyings of the Markets Section
For more details on an underlying of your interest, being it currency, index, commodity or stock, just click on any of them to access the board of the single CFD (what once was the OpenBook page of the underlying).
This board of the underlyings products is a very interesting social tool. In addition to providing preliminary information on the nature of the instrument and giving you the opportunity to negotiate it, it offers you a view on how the eToro investors community is negotiating that instrument and who are the investors who are doing it.
It may not seem, but they are all elements that, in constructing a diversified portfolio, can come in handy when you have to identify the popular investor that are right for you.
Always visible at the top we can find:
- Name and Ticker: the trading acronym of that particular CFD;
- Current price;
- Changes in terms of pip and percentage from the closing price of the previous day;
- The + button to add it to the WatchList;
- The Trade button to show the form for opening the order.
Below, the structure of the board dedicated to the individual CFD is practically standard for all. It consists of two sub-pages: the Feed, which is always displayed first by default, and the Chart.
Let’s look at both.
The Feed page of the CFD
The central part is dedicated to the Live Feed, a key element for real Social Trading. Here you can see all that has been said and done by the eToro community regarding that single underlying, the opening and closing of operations, the analyses and comments, all with the name of their authors.
This way you can see if for the underlying of your interest there are professional investors who say or do things you may like, or that can direct and help you make better operational decisions. In short, real Social Trading activity within the community, in the true sense of the word.
You can choose to display only the Top Feed, i.e. the most important ones chosen by eToro based on merit and popularity, or to see them all indiscriminately.
On the lateral sidebar instead we find other details:
- Chart: linear and of the last month. Here for all the stock CDFs there is also a small description of the company or firm.
- In the section below we can see the number of eToro investors who added that product to their Watchlist (Followers), those that are materially investing money on the CFD (Investors) and the usual Sentiment between buyers and sellers.
- Related Markets: a random extract of the other underlying belonging to the category of the instrument in question.
- Investors: a random extract of some of the investors who have opened operations in real money on that particular CFD.
The Chart Page of the CFD
The other page of the CFD board is dedicated to a chart tool.
In the old version of eToro these types of charts were accessible only by the WebTrader, while in the OpenBook of the single CFD there was only a small chart on which it was impossible to work.
With the new update of eToro now you have access from here to a real chart for studying, without the need to use those of the WebTrader.
Then clicking on the button at the top right (as shown in red) you activate the Full Screen mode, as well as get access to all the tools of management, customization and studying that can be used on the chart (marked in blue).
From the Time Frame, to the chart type (if linear or candle sticks or bars), to the studies and indicators, with these tools you can work on the chart in great depth (if you are a professional trader of course).
As you may have noticed, the new Markets section is the heart of the eToro Social Trading.
Being able to focus on only one item at a time, to study it in depth looking at the comments, advices and the views of different investors, can definitely be a very important point of strength for your journey of growth, not only in Social Trading, but in the world of financial investment in general.
This section will also come in handy when you’ll want to look for those particular investors who focus on specific underlying assets, in order to find those investment profiles that might be suitable for your investment portfolio.
It’s definitely an approach of analysis and research not to be underestimated, especially if you want to build a diversified and balanced portfolio that can meet the different and difficult market conditions, combining the presence of different types of investors, from different investment techniques and various financial instruments.
As you will discover in the next lessons, one of the main activities of a social trader is precisely the research, study and identification of the investors that may fit his risk profile and be suitable for his investment portfolio.