Can You Short Sell on eToro?

You just watched a stock explode for no real reason. Your first thought? That’s not going to last. So the next question comes naturally: Can I profit when a price goes down? If you’re using eToro, the answer is yes—you can short sell. But it’s not as simple as clicking a button. Let’s walk through how it works and what you need to know to do it smartly.

What Is Short Selling?

Short selling is a way to make money when you think an asset’s price will fall. Instead of buying and hoping it rises, you’re betting it will drop. You “sell” the asset now, then buy it back later at a lower price. If you’re right, you keep the difference. If you’re wrong, you lose.

Think of it like this: You borrow something, sell it high, and buy it back cheaper later to return it—keeping the profit. But if the price goes up, it costs you more to buy it back, and you lose money.

How to Short Sell on eToro

Short selling on eToro is done through CFDs (Contracts for Difference). You don’t own the asset—you just trade on the price movement.

Step-by-step to short sell on eToro

• Log in to your eToro account
• Search for the stock, crypto, or commodity you think will fall
• Click “Trade”
• Select the SELL option at the top
• Choose your trade size and set stop loss and take profit levels
• Adjust leverage (or leave it at x1 for safety)
• Click “Open Trade” to confirm

Pro Tip: You can also manage or close your short position anytime from your Portfolio tab.

Buying vs Short Selling – What’s the Difference?

Here’s what changes when you flip the trade direction:

Going Long (Buy)

• You profit when prices rise
• You own the asset (or the CFD equivalent)
• Your max loss = your investment

Going Short (Sell)

• You profit when prices fall
• You don’t own the asset—you’re speculating via CFD
• Potential loss is technically unlimited if the price rises too far

That’s why risk control is so important when short selling.

Real-World Warnings and Insights

Many new traders think shorting is easy money during a crash. But here’s what experienced traders say:

• “I shorted a tech stock right before earnings—it popped 18% and wiped out my trade. Never again without a stop-loss.” – Reddit user, r/etoro
• “It works great when markets are falling fast. But shorting too early or without a plan? That’s where it gets dangerous.” – eToro community member

Shorting rewards preparation, not panic. Always think about when and why a price will fall—not just if it will.

When Should You Avoid Short Selling?

Shorting can be tempting, but there are times it’s smarter to wait or skip it altogether:

• Around major news events or earnings reports
• When the asset is illiquid or highly volatile
• Without setting a clear stop-loss level
• When you’re emotionally driven or revenge trading
• If you’re unsure how leverage works
• Pro Tip: If you’re feeling nervous, switch to your eToro demo account and test your short strategy with zero risk.

Final thoughts

Short selling can be powerful—but only if you respect the risk. Practice with a plan, use stop-losses, and stay emotionally steady. You don’t have to short every falling stock to be a good trader. Pick your moments, protect your capital, and build confidence one trade at a time. You’ve got this.

FAQs

1. Can I short sell real stocks on eToro? No, shorting is only available through CFDs which track asset prices.

2. Is short selling available in all countries? No, users in some countries like the U.S. cannot access CFD-based shorting due to regulations.

3. What is leverage, and should I use it? Leverage lets you trade bigger with less capital, but it also increases risk. Beginners should use low or no leverage at first.

4. Are there extra fees for short selling? Yes, overnight fees and spreads apply. Check the asset’s fee info before opening a trade.

5. Can I practice shorting before risking real money? Yes, use eToro’s demo account to test your strategy safely with virtual funds.

6. What happens if the price rises instead of falls? You’ll lose money. If you use leverage without a stop-loss, your loss can exceed your deposit.

7. Is short selling beginner-friendly? It depends on your risk control. If you’re new, start small and never short without a stop-loss.

8. Can I short crypto or commodities on eToro? Yes, you can short many cryptocurrencies, metals, and other assets using CFDs.

9. How do I close a short position? Go to your Portfolio, click on the open trade, and choose “Close Trade.”

10. Where can I learn more about short selling safely? eToro’s Help Center, demo account, and beginner guides offer structured support.