When you trade CFDs (Contracts for Difference) on eToro, you’ve got two core strategies at your disposal: going long or going short. Going long means you’re betting the asset will rise. Going short indicates that you’re taking the opposite side and expecting it to fall.
Going long is the traditional move. You expect the asset’s price to rise, so you open a Buy position. If you’re right, and the price goes up, you sell at a higher price and take the profit.
Going short is how traders profit from a price drop. You open a Sell position and aiming to buy back at a lower price.
If the asset tumbles, you pocket the difference.
| Aspect | Going Long | Going Short |
| Market Expectation | Price of asset will rise | Price of asset will fall |
| Position Type | Buy | Sell |
| Profit Scenario | Price of asset increases | Price of asset decreases |
| Risk Scenario | Price of asset decreases | Price of asset increases |
| Opening Price | Buy (ask) price | Sell (bid) price |
| Closing Price | Sell (bid) price | Buy (ask) price |
| Leverage | Available; amplifies gains/losses | Available; amplifies gains/losses |
| Overnight Fees | May incur interest charges | May incur fees or receive interest |
Whether you go long or short, make sure that it's matched with your market view and risk appetite. Learn the mechanics and keep an eye on fees. When I was just starting out, I used to do test trades with a demo account. After I learned the basics and gained confidence, then I started with live trading.
About Mike Druttman
