eToro - What's The Most We Can Lose? - (Negative Balance Protection)
HTML-код
- Опубликовано: 11 ноя 2020
- Here's my profile on Etoro: etoro.tw/2rcYYm0
Earn Extra Money as an Affiliate: www.etoro.com/TJoinT2_A59104.aspx
Website: socialtradingvlog.com
THE TRADERS IN MY eToro PORTFOLIO: (Affiliate Links)
BalticSeal: etoro.tw/2XFDZLG
Olivier Danvel (Forex): etoro.tw/2HM1ygq
Jaynemesis : (Equities/Cryptos/Mixed): etoro.tw/2UiBHRa
Slow And Steady (ETFs Only): etoro.tw/3dqAEpe
LombardEarnings (U.S Equities at Earnings): etoro.tw/2ATDCom
Miyoshi (Equities/ETFs/Indices): etoro.tw/3mEJGEx
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
eToro Affiliate Links may lead to compensation if followed
MY BINANCE CRYPO LINK: (10% OFF Spread Fees)
www.binance.com/en/register?r...
All trading involves risk. Only risk capital you’re prepared to lose.
Past performance is not an indication of future results. This content is for educational / entertainment purposes only and is not investment advice.
About The Video:
Can we make a trade so stupid or so unlucky that we end up owing eToro money? The answer is no, because of something called 'Negative Balance Protection'.
Negative balance protection is a way to ensure that we are only risking the funds that we have added to our eToro account - we can't wake up one morning and suddenly owe them more money than we had added to our account. I made a video recently about how this COULD happen:
• New Traders BEWARE - T...
If something terrible happens and we have lost way more money than we anticipated overnight and we don't have enough money in our account to pay off our trading losses, then eToro will simply close any open trades we have, take whatever money we have in our account to cover our losses, and they will absorb the rest of the loss themselves and close our account.
Now, I have no actual experience of this - I'm going by what I've read on their site, and I hope I never actually get to the point of testing this out! But it does seems to be there as a safeguard, and I wrote to them in the customer support section, and they did state that you can't lose more money than you added to your account.
This isn't a license to trade riskily though - eToro won't just absorb our normal trading losses, and one bad trade could potentially put all of your other open profitable trades at risk as eToro uses its 'Margin Call' feature to close your open positions and cover your losses...
In this video I talk about how all of this might happen and share some thoughts about how I might avoid needing this sort of safety-net in the first place!
Etoro Beginners Playlist: • Is Etoro A Scam? Will ...
Affiliate Disclosure:
May of the links in this description are affiliate links and eToro may pay me commission if you follow them.
![Natanael Cano x Oscar Maydon - Giza [Official Video]](http://i.ytimg.com/vi/eXCS6-MSQ_Y/mqdefault.jpg)
![XO (Only If You Say Yes) - ENHYPEN エンハイプン 엔하이픈 [Music Bank] | KBS WORLD TV 240712](http://i.ytimg.com/vi/wBT1bKKwPTo/mqdefault.jpg)
Damnnn! I learned more with your video than reading 10 blog pages of etoro! You deserve much more subscribers!
thabk you :)
I love your honesty and passion for making these videos.
Reflecting on our mistakes makes sure we don’t continue to do so.
Keep up the good work.
cheers Gareth :)
Really enjoy the way you clearly explain all... thanks again will definitely checkout and learn from more of your videos sir 👍
Thank you as always for these videos, extremely helpful!
much appreciated ! :)
So missed you tom , you make my night shifts must more bearable watching your videos again. Stay safe x
I thought it another way wasting my hard earned money savings. But my greatest surprise was my investment of
$3,000 came out with $6,580 in 10days trading..... you just have to be patient with them till your trades are completed....tually trading was not easy for me .
Lost A lot of money through +500,FBS also lost a lot of
Money to trading assistants and copy trader’s, almost
Gave up on forex/bitcoin trading. But a friend of mine introduced me to a good broker, at first to be honest I didn’t just recovered all my previous losses... I made much more than my past expenses .... Actually she charged 15% which won’t affect you in any way since her trading efficiency comes in multiples of investment...
I personally recommend mrs Alicia j Bransford trading services for the best copying trading always trade with her and stop loosing your money.... reach out to her and believe me a trial will convince you
Here’s her contact details ⬇️⬇️⬇️
+1 201-613-1944 🇺🇸
@whatsapp
Living in the sun, trading , life goal reached :) p.s. another good video!
thanks Chris :)
Great information. Many folk don't know this. Thanks.
Very useful information, I’m a beginner in eToro, I already hold crypto etc.
Looks a nice place, nice garden 👍
thanks Steve:)
Great information, glad to find your channel.
thanks so much :)
New Subscriber - Really fantastic videos. Well done
Thanks for the informative videos as always Tom.
As for the own experience with eToro (with fees on leveraged positions), it just shows me a negative available balance (eToro doesn't close my current open positions) and the negative available balance gets deducted when I manually close an open position or take profit
thanks :) the margin call would kick in (I think) when your negative balance starts to get close to losing more than your entire available cash equity. they protecting against an overall negative equity in our accounts rather than a negative on individual trades. thats not a great explanation :) I need to learn about it more thoroughly to be able to explain it more simply...
@@SocialTrading That makes perfect sense. Thanks Tom and have a good one
Thank you for your informative videos I am new in etoro and this video is really helpful to me. Thanks and God bless you and your family.
really kind of you to say :) thanks so much!
BInge watching all your VIdeos. Thanks. A lot of learning here
Thank you :)
again, thank you for this video.
That was helpful video ❤️❤️
Thank you ❤️
much appreciated :)
Excellent video, thanks!
I’m an investor I will advise you all not to be convinced by the wrong brokers my best recommendation for you is to get in contact with the only honest man that helped me with a good strategy and I just made my first withdrawal and I’m so happy and grateful which I’ll highly recommend you all to contact with him politely on. connorbilly61@gmail.com) he is the number one ☝🏻 professor I know he is reliable and also trustworthy he helped me for free and I’m enjoying my investment and steady earnings.
Spent the hours researching and trying to get my head round this and it's just clicked: "The broker will only lose the amount between you going into negative balance and the losses occurred between then and the broker immediately and automatically closing down all your positions, which would normally just be half the spread on each position." I was thinking how on earth can a broker afford to cover all those losses??? but they won't as they'll sell everything you have the moment you go into negative to cover it and shut everything down automatically. In situations like the CHF:EUR debacle in 2015 (which triggered NBP being put in place) it wouldn't have helped them much as it fell off a very high vertical cliff, but in most other circumstances they will only lose a small amount.
So what’s to stop you setting a massive leverage on a high percentage of your overall balance? Well, if you do, it will only take a tiny fall to put you into negative balance and then the broker would shut all your positions down. So, in essence it would ignore whatever stop loss you had and close you down way before then. They are not going to keep the position open and keep incurring losses. This has the effect of setting your “Actual Stop Loss” way to fine. That is what “should” prevent anyone from doing such a dumb thing…as long as they understand that “Actual Stop Loss” principle.
As an example, say I had £2000 in my account and took a buy position of 5x leverage on a share at £0.32 and put £1000 into it, and I set a stop loss of 50%. If the share went up £0.01, I gain £5000 and if it falls £0.01 I lose £5000. The stop loss of 50% is saying sell at £0.16 but by then I would be down £80000. But that won’t happen as the broker would automatically close the position and sell all my other positions I had as soon as my losses reach £2000 - which is at a price of £0.316 (and I start to go into negative balance). When you take that into account, by taking that much risk against your overall balance, you are effectively setting a Stop Loss of 0.316/0.32 = 1.25% which is WAY too close for most positions, as with normal volatility the price will bounce around beyond that and you wouldn’t want it triggered. So in that scenario the broker will not lose £78000 (£80000-£2000), it will only lose half the spread as it closes all your positions within your £2000 account which may be approx. 1 to 2% of your account value, so say £30.
So the higher the financial risk of any position in proportion to your total account value, the tighter your Actual Sto Loss stop loss will be on that position.
*Great vids by the way! :)
yeah, I was planning on making a video about roughly this actually. how setting stop losses whilst using leverage makes them so tight that they sit too far within the normal volatility of many markets and therefore become incredibly.likely to continuously lose money on trade after trade as your take profit level is liable to be much higher than your real stop loss, so it'll keep hitting your sl and rarely reach you tp
amazing explanation!
Still sunny ☀️ and you’re smile make it more bright...😍
Thanks Ramil :)
@@SocialTrading happy new year 🎆
same to you! Happy New year :)
Thank you! This is GREAT NEWS, I was really afraid of ending up owning money to any broker, this makes me more comfortable investing! :D
Great video as always!
thanks Imad!
Just happy to find your channel. It helps me a lot. Thanks a lot handsome man.
Thank you
•📩•
+•1•3•1•7•8•2•7•0•3•4•5.
A lot of things you mention make sense. When I started trading I lost a heap of money... but.. after 5 months of grinding away, I turned it around.
I would not suggest anyone copy trades... it’s cheating, soulless, and you learn very little...
Start with small money but trade from the beginning, as you learn from your mistakes... you never really learn copying someone else.... that’s my take.. 👍
Nice informative video again 👍 you seem like the chap everyone new to this should go for a pint with
thanks so much:)
Hey Tom, what do you think.. is it better to add founds to a trader position or first we have to close it manually and add all together? I know that when you add founds, the P/L% will not show correctly.
Thank you! Your videos are absolutely great.
The negative balance protection has to be set by the user or is automatically set?
As they have no way to touch your actual money you did not deposit, it is automatical.
@@Fera-gr5mm •📩•
+•1•3•1•7•8•2•7•0•3•4•5.••
On my first month (may 2020) I lost 68.2% of my total balance, lol. I was trying to trade the sp500 for some reason. I’m glad to say that I have learned and I am now a long term investor and I am overall 8.8% in the positive for the year. I’ve been investing in tech stocks and index funds as well as crypto
That's mean you are buy and hold?
Can you please tell us what equipment you are using like camera and microphone?
Hi Tom, im a newbie to this world. Your videos are very helpful. Thanks a lot mate.
Just a quick question, when you copy someone or you get copied by someone, can you see their actual money? Or its private and only the trader can see their money? Thanks again 🙏🏼
Thanks. For your feedback.
For more guidance.
W..h..a..t..s..a..p..p
+1 ..7..2..0..6 ..8..0..7..6..2..7
Another excellent video
Thanks Darren :)
How do Etoro pay stocks dividend? I bought Apple stocks in oct and should get dividend payment on 12 th November but I have not received yet . So how will etoro pay dividend?
great video again - what is an "ideal" "safe" stop loss percentage on a stock?
Hi there - thanks. I don't know - I've heard people say that you shouldn't risk more than 2 or 3% of your portfolio on any trade, but then there's so many different opinions and strategies that I'm not sure which ones are best. I'd just start reading about trading risk management and 'position sizing' - there's loads of good info out there from experienced traders.
I had the NMC health ( A company which was delisted from the LSE for fraud ) position which it was $100 with leverage x5, so when they sold the shares i had a negative balance of -$500.
I also had another postion of NIO Inc of 54$ just for me to pay the overnight fees . So from yesterday as soon i saw my negative balance i didnt close the position so the money wouldnt be absorbed and i contacted etoro .
Around an hour ago i just came online to check my position and i found it was closed , and the money absorbed into the debt .
I also would like to add that i have a retail account i am not a professional so i should be protected by ESMA for the negative balance.
They closed your trades to cover your leverage x5, u invested 100 $ so in case of delisting u lose that times five
Hi Tom,
This may be a silly question.
I have Ethereum in my portfolio - what are the advantages to moving it to my Etoro wallet ?
Thanks as always for all your great videos which has given me over 40% last year !
Thanks. For your feedback.
For more guidance.
W..h..a..t..s..a..p..p
+1 ..7..2..0..6 ..8..0..7..6..2..7
ESMA rules prevent retail spreadbetters here in the U.K. (and I presume other European countries) from losing more than they have invested. This came as a consequence of the whole SNB Euro/Swissie peg incident a few years ago.
Will you speak about Diginex EQOS the first Nasdaq listed company about blockchain and crypto-exchange? What do you think about Diginex? I know that is the first exchange of Singapore
So can you not hold on to the leveraged Tesla stocks even if they go down 50% in value ...Will etoro immediately close the trade or will I be able to hold on to it
The regulator (ESMA) changed the rules a few years ago to protect retail customers from losing more than invested. Professional accounts are excluded from the regulations so can still go negative but good luck getting a professional account requirements are pretty tough ie balance of over 500K and you work in the banking sector or have done.
I reckon it would be quite difficult to get your account balance to go negative I am sure their stop loss systems will kick in before it does.
@James Willis No not really I do watch the GBP/USD when trading and occasionally make a trade for fun but it will be a very tiny amount
@James Willis These scams bots are getting better
@James Willis Well your not a very clever bot clearly not reading anything. Let me guess your going to tell me how to contact Mr Michael the scammer via whats app ?
wow... is that a bot or a human acting like a bot. thats insane. oh no... they're humans
whatever it was, its gone now.
Good video as usual, thank you. I have a question: if I don’t use leverage and my trade goes in the minus can eToro ever close my trade even if my trade is at -100% ? I mean can I leave my trade open for ever?
I know if I lose -50% of my trade using leverage eToro will close the trade.
U can let it open until that company get delisted from stock market, then etoro will announce that and close it in delisted price
So does that mean that I only lose what I have put inn
I use to trade with CFDs before and have lost a lot of money (without any knowledge of leverage) thinking I am only buying the share of a company which I always wanted to do.
So on eToro if I put in let’s say $100 for a stock and there is a downwards shift of about 20% so do I only lose 20% of $100 or there is some other calculations to it
thats unbelievable myb they didn't understand your question ask them once more
What if one of your 5 copied traders goes negative, will it affect your total equity?
This can happen with other traditional brokerages and i've heard of horror stories with people trading huge leverages on margin and the market goes against them but the stop loss or margin call wasnt able to trigger before the losses and they end up owing a whole bunch of money to the broker. Gap ups and downs are a risk as well as slippage at your take profit or stop losses, when trading low liquidity assets there might not be enough volume to close out of a trade at the price you want and the next available price may be a way off.
I think Diginex could be 10x stock in next four years if you also think about CBDC revolution
Hey Tom Im a big fan,,,Why wouldnt you invest more with Jay ?Transfer all your other investments? he is powereing on. cheers Andy
I would have assumed eToro bought insurance for such an extreme case
Can SL and NBP actually backstab you by closing a position just before it rises again?
What if I invested $50 and did not set stop loss because it’s my long term investment and the market did not rise and it goes completely to -50 and after a month or so the market starts rising. Will my existing $50 still be used and rise from -50 to -49, -48 and so on ? Or have I lost it all? should I be depositing again?
If I would try out how does this negative balance staff works on demo account, would I receive another virtual 100 000 USD for further experiments?
Hello STV,
Hi! I would like to ask question, have you watched Die Hard 4? Is it possible that a hacker can hack the Stock Market? Haha. Thank you.
you should see what the high frequency trading algorithms are doing. actually we can only imagine what they're doing now... this is from years ago:
ruclips.net/video/kFQJNeQDDHA/видео.html
I just wanted to clarify on losses with leverage. Do we only lose when we sell below purchase price? Or does eToro automatically end the trade with leverage for you when it reaches a loss?
It automatically closes the trade when you've lost a certain amount. It needs to make sure you're not in any risk of incurring losses greater than you can pay back - so it cuts it off before it gets to that point. In the past I have extended my stop losses whilst the trade was still open (I didn't want to get cut off and I thought the trade would turn around soon...) I had to add additional funds to the trade to cover my extension of the stop loss - they wouldn't take even a fraction more risk. I lost a lot on that trade. RiteAid was the company - I still remember it! :)
@@SocialTrading Damn, that’s definitely high risk. Thanks to you I won’t be trading with leverage. It seems the house will always win.
@@SocialTrading What if I'm not use leverage? Etoro will close my account if I'm loss?
Im just curious if there is something mentioned on etoro platform in the event the owner died and he owns stocks so what are the steps or can this be claimed by the heirs. As there was no beneficiaries we filled in when we are signing up..I hope you notice my question. Thank you in advance..
@Mystique Lady Good question 😀. This part should be state to be clear before we signing up. Further i do hope etoro would made it clear for the platform user's during this uncertainty time and condition. Stay healthy....✌
Hi, thank you for this informative video, very useful for me as I have an EToro account. Do you you (or anyone) know about the ‘cash available’ section of my portfolio and why it’s going DOWN. I have invested in the sxp 500 and ever since I see my available money has gone down which feels like a hidden fee. They said there are no hidden fees so this feels crafty from EToro tbh. Any help or info would be greatly appreciated
hey there - wow, I only just saw this. Did you ask them or find out what that was?
Could it maybe be because you had a 'sell' position open on a company which issued a dividend?
www.etoro.com/customer-service/help/75781345/does-etoro-pay-dividends/
@@SocialTrading Hi! :) So basically I didn’t open a sell position and I did make a complaint to them about this.
So if you buy a CFD like the SXP 500 then you have to pay overnight fees and also weekend fees to hold the position. In my case, they charge me about 6 dollars a month total which is deducted from the ‘cash available’ part of your account. So consequently, it is possible that this balance could become negative if you have insufficient funds so that’s something to be aware of.
Six dollars a month doesn’t sound like a lot but this adds up to over 70 dollars a year which costs me over 7 percent of my starting amount which is 1,000 dollars. So if the sxp 500 doesn’t gain more than 7 percent in a year then I haven’t made any profit effectively. If I invested more than 1,000 dollars then obviously the percentage I would pay of my starting position would be lower but that’s only an assumption.
So basically, they say there are ‘no hidden fees’ but they didn’t make it obvious that they would charge you for fees before opening a position in a CFD so that is something to be aware of
You’re so easy to learn from because you teach by emotions.
Cheers :) Much appreciated
i lost more funds then i had in Etoro back in 2017 but i funded my account right away to avoid any problems
So did the negative balance protection work?
Nice video. Thought he was simon cowell or gordon ramsey.
Hey why you do not have affiliate link for etoro platform registration? Your affiliate link is only for partners program, but you don't have an affiliate for yourself?
Or when you promote partners, it automatically registers a cookie and you also get commision for the platform itself if someone registers and deposits money?
Does that therefore mean, you can continuously trade with a minimal amount with maximum leverage without the risk of ever losing more than $100? Sounds too good to be true.
Actually, the stoploss is mandatory so you can never go into minus figures.
U can go to minus, market is closed and if something goes wrong in your trade then your stoploss will close in first open position, so u can lose more
@@11Polski11 what will happen if i bought a stock with no SL and TP set,market price is constantly going down ?
@@whEnG1324 with no leverage nothing, u can lose 100% of your invested money only if stock get delisted... if u r using leverage then if u lose more than u have on account then your position will be closed and more trades if they need to cover your losses... if u have only one trade and it went down (rly bad) then u will have minus equity and right after market opens etoro will close your trade and took losses for you (u cant lose more money than u deposited)
Can Sri Lankan use ETORO?
Where are you its lovely and sunny.....Ok Italy ☀️
yup, in the south :)
This just happened to me this weekend. I had a position open on AUDUSD with leverage that I left over the weekend and the index gapped down over the weekend. It was the only position I had, it was a 220 dollar position. It closed and my balance is at the moment $-447 I reached out to etoro and they denied being able to clear my negative balance from my account. I made clear to them my understanding about the Neg Balance Protection and they went quiet on me. I am hoping it will clear out automatically in a couple of days.
Hi, could you tell us what finally happen ?
What would happen if you reinvested the following day I wonder?🤔 Would eToro be entitled to that money? I’m looking forward to starting proper trading. I’ve been waiting nearly a month to be verified 🤷♀️ My virtual account is going well atm so frustrating that it’s not real!! I’m not using any leverage....too scary!
Let's talk and take advantage of this dip
•📩•
+•1•3•1•7•8•2•7•0•3•4•5.
@@socialtradingvlog5445 scam
THANK YOU ..cute guy❣
thanks :)
Where's my popcorn?
:)
i started to copy Jay Nemesis with 1000$ unfortunately im in red due to Crypto falling. Should i be worry ot just leave it as is?? im so far RED for January but he isnt. I dont really know how does it work. Can you help me?
There can be multiple reasons at play here, I'd suggest reading etoros help article on the subject of copying.
I'd bet the fact you are currently in red is you've not had the copy open very long and you are still trying to work back the spread fee.
@@Jacked153 im green now. Yesterday was a roller coaster
Have yo got a Twin Brother called Simon Cowell...??
Hello Thomas,
I'm got some extra cash around 100k and I'm planning to divide it between the top 10 copy traders!
What's your opinion on this?
@@davidlemarquis1133 i dont have any idea whos Mrs Monroe
@@evannapieterse7805 i dont even know who is she :/
You shoudnt have moved from the cafe it waz beautiful
Hey Thomas I have more than 330$ in etoro account but I have withdrable balance ziro what is this ?
Thanks alot ☺️
hi there. is it all being used in active trades?
@@SocialTrading yes but I closed some trades and wanted to drow some $ but there was still wathdrawable balance wass 0.00
If I close all trades than how long time does it take to draw all money
Thanks. For your feedback.
For more guidance.
W..h..a..t..s..a..p..p
+1 ..7..2..0..6 ..8..0..7..6..2..7
I hope that etoro hasn't changed any policy on losing the the deposit only.
me too!
Spend at least a year using a virtual account.
Why are you always picking on tesla?
I'm not sure :) I think its because its such an easily recognisable name everyone will instantly know I'm talking about a company and therefor an equity...
Hey Thomas I wanted to copy u but I think 🤔 there is no place for more Copiers
But I request u that when is the perfect time to buy and how to take a risk ?
😙
That's the entire discipline of trading :) Working out the perfect time to buy and what risks to take is what all traders are trying to work out for their entire careers, so there are definitely better people to ask than me :) I'm just copy trading... Thanks for the vote of confidence though! It took me ages to get even a little familiar with the markets and get used to how things move and work. I think time is a really big help.
Thanks. For your feedback.
For more guidance.
W..h..a..t..s..a..p..p
+1 ..7..2..0..6 ..8..0..7..6..2..7
Hi, noticed before you used to copy wesl3y, how come you dont anymore?
Hi there - he's a great guy, and has done really well, but I was focusing on really low risk traders for a whole year and trying that out as a strategy - I didn't want to be too exposed to equities at the time. i've changed my strategy a bit now, but copied Jaynemesis for equities exposure instead for now. Are you doing well with Wesl3y?
@@SocialTrading ive not yet still in research mode, trying to find the best copy trader.
@@edybedyedy u never find best, coz history of trades doesnt mean he will be best in next period :) just pick more traders, just invest min. to cover their trades and later add funds to them (best way is add funds when market went red for days, then you get better positions to recover and will earn more than copied trader if his trades turn up)
I had a trade for gold on 20x levarage n they charge me daily fees ones you reach minus 1000k they closed my trades
I'd open a support ticket and let them know!
You should copy Stefan_Lenzen
So everyone, only invest money you can afford to lose.
Yes, ideally. It's risky...
IMHO there is nobody besides you to cover the loss. Etoro is not owing the "negative balance" money to anyone, they will not loose money, they will just earn less. It's just agreement between you and etoro who will pay to whoom when the stock will go up or down. It's like a bet.. etoro wins a you should pay.. but they will not want the whole amount, they will be happy with just your whole balance and forgive you the rest.