Understanding Recent Changes to Cryptocurrency Trading Rules
In December 2018, eToro temporarily reopened select long (buy) cryptocurrency positions that had been closed at 100% of the initial investment amount as their stop-loss level. This adjustment was made between December 25, 2018, and June 30, 2019, to align with enhanced customer service standards. Notably, manually closed or stop-loss edited positions weren't affected by this measure.
Key Calculation Updates from February 2018
On February 21, 2018, eToro refined how trade quantities are calculated to better reflect market prices:
- Pre-Update: Trade quantities were determined using the bid (sell) price, regardless of position direction
Post-Update:
- Buy quantities now use ask (buy) prices
- Sell quantities use bid (sell) prices
This change means positions created before February 21, 2018, might still display stop-loss rates higher than the minimum 0.0001 or 0.01, even when the effective stop-loss equals 100% of the invested amount.
Important Historical Context
In December 2017, eToro disabled stop-loss settings for all cryptocurrency positions. The recent updates introduced:
- Default stop-loss of 100% investment amount for new trades
- Disabled modification of stop-loss for all non-leveraged cryptocurrency positions
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Common Questions About Stop-Loss Adjustments
Why Does Expanding Stop-Loss Require Additional Funds?
To widen your stop-loss to the lowest possible ratio, you'll need to add funds to cover the difference between:
- Current stop-loss (100% of invested amount)
- Maximum stop-loss ratio (0.0001 or 0.01)
Calculating Required Additional Funds
For non-leveraged long cryptocurrency positions, use this formula:
(Current Stop-Loss Rate - Maximum Stop-Loss Rate) × Quantity = Additional Funds NeededIdentifying Maximum Stop-Loss Rates
Each cryptocurrency has specific maximum stop-loss rates:
| Cryptocurrency | Maximum Rate |
|---|---|
| Neo, BTC, BCH, LTC, DASH | 0.01 |
| ETC, ETH, XRP, XLM | 0.0001 |
If your open position's stop-loss matches these rates, no adjustment is needed. Check your portfolio page for current rates.
Understanding "Zero Stop-Loss" Displays
While called "zero stop-loss," the platform actually sets it to 1 pip (the minimum ratio). This means positions will only automatically close if the currency becomes practically valueless (reaching 0.0001 or 0.01).
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Practical Steps for Adjusting Your Positions
How to Widen Your Stop-Loss Rate
- Calculate required funds using the provided formula
- Ensure sufficient account balance
- Contact customer support to request the adjustment
Processing Timeline
Due to system requirements, stop-loss expansion requests are only processed:
- On Sundays during market closures
- To minimize trading impact
FAQ Section
Q: Why can't I modify my crypto position's stop-loss?
A: eToro disabled this feature for non-leveraged crypto positions due to their highly volatile nature.
Q: How do I know if my position needs adjustment?
A: Compare your current stop-loss rate with the maximum rates listed above.
Q: What happens if I don't adjust my stop-loss?
A: Your position will maintain its current settings until manually closed or reaching the set stop-loss level.
Q: Are there fees for stop-loss adjustments?
A: No additional fees beyond the required funds for widening the stop-loss.
Q: When will my adjustment take effect?
A: Changes are implemented during the next scheduled processing window (typically Sundays).
Q: Can I set custom stop-loss ratios?
A: Currently, only the maximum ratios are available for cryptocurrency positions.