No, setting a Take Profit (TP) is not mandatory for all trades on eToro. It is required for certain types of positions, while optional for others.
eToro requires a Take Profit to be set on:
This requirement is part of eToro’s risk management policies so that trades have predefined exit points to help manage potential market volatility.
You are not required to set a Take Profit when opening a non-leveraged BUY position. This typically applies to long-term investments in assets like stocks or crypto assets without using leverage. In these cases, you can choose to set a Take Profit or leave the position open indefinitely.
For trades where Take Profit is mandatory, eToro automatically sets a default TP level when you open the position. However, you can modify this level at any time:
This flexibility allows you to manage your trades according to your investment strategy.
Knowing when a TP is needed (and when it's not) can help you stay in control of your trades and make sure that they are still in line with your strategy. New to Take Profit? I suggest using the demo account (you can open one here) to try it out in a risk-free environment before going live.
About Mike Druttman