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Serhii

How no stop loss will work for me with buy position on eToro?

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Hello. Please, help me to understand:

With the conditions:

  • Open BUY (Long) position
  • Leverage: x1
  • Initial Investment: 1,000 USD
  • APPLE STOCK (AAPL) Ask rate: 250 USD
  • Position: Open 4 units AAPL BUY


If I set no stop loss, should this mean that I lose all 1000 USD only in the case, when AAPL stock will drop to 0 USD (what is almost unreal)? 

e. i. with such a buy position the stop margin will be 100% of the $1000 investment?

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Hi Serhii

If Apple stock was to drop low enough to the point where you don't have enough margin in your account to cover your position then the broker will give you something called a margin call. They will either close your position immediately or ask you to deposit more funds into your account to cover the position. If you cannot cover it then the position will be closed by the broker. 

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