Orders VS Trades On Etoro

Hey… So, another question I’ve been asked is “what’s the difference between a trade and an order on Etoro?” And it’s really
quite simple – there’s a few things which are a bit technical, but really, it’s a
simple thing. So, whenever you buy something on eToro,
you’re normally buying it – you see the price listed on the page… So, if we go to
Bitcoin – let’s go to Bitcoin, because that’s been doing well… So – here we see
the normal price. That’s how much we normally would buy Bitcoin for… Here’s
the trade button – we’re used to that. When we go to the ‘trade’ button – say we want to buy
some Bitcoin… So obviously, if you’re buying, it means you’re betting the price
is going to go up, and if you want to sell, it means you’re betting the price will
go down – you want to make money that way. So, we’re normally – we see this thing… Here’s the price – Now, we see that the ‘buy’ price and the ‘sell’ price are different. That’s
the spread fee… So, when I press those buttons – you see this number changing – now… But normally, when we open a trade, we expect to open the trade instantly, okay –
I want to buy it right now, I don’t want to wait, I don’t care how the price is
going to change… I do, but only in future I want to buy it now, and that’s – my, kind of, bet is placed. Now, over here, we see the button which says ‘trade’. If we click on
that button, we can see that there’s another option which is ‘order’, and this
is – some people have asked what’s this about… Really basically, all it is is that
an order is that you…. When you select order, you
can set a price that you want to buy it at… or if you’re selling, that you want to
sell it at – doesn’t have to be the price it’s at now, okay. So, you’re putting
an order in – let’s say I want to buy it… I think that Bitcoin is going to go down
below 8,000 let’s say. So I want to set an order at 7,900
okay so I can do it here – I can specify any level – any price that I actually want
to buy it at, which isn’t the one where it is currently. That’s basically all an
order does. Now, we’re kind of used to using orders… When you set up a
trade, and you start a new trade – you often set a ‘stop loss’. So, a stop-loss is
actually an order – it’s a stop loss order… What you’re saying is that ‘if it ever
gets to this predefined level, cancel it, sell – close the position, sell my trade – I
want to get out of it.” Same with the ‘take profit’… If I go into any of my
trades, here in the portfolio… It’s my virtual portfolio… Here’s my ‘take profit’.
So, the take profit is saying ‘if it ever gets to 396.29, close the trade, and I want to get out of it.’ – that’s a type of order
okay… So a ‘take profit’ is an order, a ‘stop loss’ is in order, but with all trades,
it automatically asks you if you want to set those up. Because one’s for
security, and one’s to take your profits. So even though take profit and stop-loss
are actually orders, they’re very different from what we’re talking about
when we say ‘what’s the difference between a trade versus an order’. I just,
kind of, wanted to give the fullest information about what an order is,
so that people can understand – we can understand – that we use them
anyway… It’s not like some mysterious thing. Now, take profit and stop-loss… Here I am on ‘Zendesk’. If I press trade… Here’s the take profit, and here’s the
stop-loss, and here’s the order. Here’s really what we’re talking about. ‘At
market’ and ‘order’. So, the take profit and stop-loss – they’re not called orders on
eToro, okay… So, it’s a bit confusing if I say that – if I even call them ‘orders’
because people might get confused… When we talk about orders, we’re talking about these things here… Where we want to buy into a stock or an asset at a particular
price, these ones – the take profit, and stop-loss… they both deal with when we
want to exit a trade at a particular price, okay… So those are orders to exit
a trade, but we don’t call them orders – so you won’t find them up here – you can’t
set your stop loss from the order bit… Whenever you start a trade, you’ll see
your take profit is here, and your stop loss is there. Anytime, if we’re in a
trade, and it’s already active, we can go to our portfolio, and we can go to any trade
and – here’s the stop loss and take profit. And we can just click on it, and we can
edit that, even whilst the trade is active, okay. So those orders – they’re
different okay. They’re to exit a trade, and Etoro puts them there so that we have some security – so that we have a time where we can either take the profit,
because we’ve made as much profit as we want, or we think we can make – and we want
to get out of the trade, we want to close the trade. Or stop-loss – because we’ve
lost as much money as we want to lose we’ve predetermined that, and it gets us
out of the trade. They’re both to get out. The orders we’re really talking about
are actually the ones when we want to get into a trade. So it’s these ones
here… It’s that. So… That one – if you’re on a stock, you can find it there, and if you’re on anything else other than a stock, you can
find it here, okay. I don’t know why they’ve done the difference – made it
different on stocks and other assets, but they have. With the rest of them,
when you’re setting a new trade – so we’ll go back to Bitcoin…
That’s basically all it’s doing – is it’s saying “I don’t want to buy it at the
current market value.” This – what we’re normally doing here, when we buy or sell –
is actually known as an ‘At Market order’. or a ‘market order’, but we don’t have that – we just have a ‘Buy’ button or ‘open trade’ button. As standard, the default is
actually a ‘market order’ – this is actually called a ‘limit order’ when we set it
as an order, but here, it’s just called ‘order’ to keep it simple. When you select
order, you can set any price you want, and there we are… And you can set the order
at 8,000 – boom boom boom, so there we are – 8,000, and I set the order, okay. Now, that
is going stay open – so if I go here, I’m back in my portfolio… you see, this button
shows my history – the history of my trades… This is my portfolio, this one will show
any orders. So there it is – there’s my order – that’s how much I invested, I’m
going to execute it at 8,000, and it’s currently here, all right… Now, there are
different types of orders you can set – in other sites. You can set them, you know – it
has to be filled by the end of the day or get rid of it, it has to be filled
within so many minutes or get rid of it… This one is actually – in other places –
it’s known as a ‘Good till … ‘ executed… I can’t remember… Whatever, basically the orders
we have here will stay open until they’re fulfilled – and they might not be
fulfilled – it might not go down to 8,000, Bitcoin might go higher and higher and
higher, never get to 8,000 – in which case that order’s never going to be filled.
You’re never going to by that amount of Bitcoin … So, this order will be
executed if it’s there – If it’s not – it doesn’t get there – the price of Bitcoin,
then this order will just stay open. Whenever you want, you can just go here,
and you can cancel the order. Big thing comes up ‘Cancel Oder’ –
boom – ‘pending close’ and it’s closed. So that’s how orders, kind of, work. Now, why
do people use them? Alright, so when you’re – when you’re trading, you have two
basic big schools of analysis. So there’s ‘fundamental analysis’ – where you’re
looking at the sort of – the fundamentals of a
company. Is Apple going to do better? Is it going make money? How they got a new CEO? How’s the stock price? Have they got a lot of debt?
what’s … – lots of things – earnings reports… These are the fundamentals – Have they got new products? Do I think they’re going do well in future, or badly? These
are going to affect the price fundamentally all right… I’ve heard – good investors that I’ve
listened to have said that 80% of your reasoning should be fundamental – really…
about the fundamentals of a company if you want to really invest properly… The
other part is called ‘technical analysis’. Now, technical analysis is where you’re
looking at the charts. So, if we go to any – anything – we go back to Bitcoin, we go
here, and we can go to the charts, and we can see a bit about what it’s been doing
over time. It’s unbelievable, what it’s been doing over time… Now, so – when you decide you want to buy something or you want to sell something, people say you should do that using ‘fundamental analysis’, but then, look – if you look at
Bitcoin, it goes up and down, and up and down, and up, and there’s all this sort of
variation, Okay. Now, the study of that variation and
how the chart actually moves is called ‘technical analysis’. So, you’re studying
this – which is not about the fundamentals of a company, it’s about how the price is
moving on the actual exchanges. So, one thing they do is – people want to find
what’s called the best ‘entry points’ and ‘exit points’. So, once they’ve
worked out that they actually want to make the trade – they want to invest in a
company, they start looking at “all right, I want to make this buy, but what’s the
best time to enter?” They know that it goes up and down, and up and down, so do I want to enter here and it’s about to go down? Or do I want to wait till it’s here,
and go up? The study of how to find the best entry and exit points, as well as
looking at longer-term movements is called technical analysis. So you have to
study that – technical analysis, you can study charts, you can study the sort
of – the trading instruments… There’s lots of different studies, and ‘stochastics’ and
‘volume charts’ – you can put loads of things over here – different things to
help you with your technical analysis. And you’ll have to study them separately – it
takes time. But, once you understand technical analysis –
say, for instance, ‘resistance’ and ‘support’ I made a video – a short video about what
‘resistance’ and ‘support’ is. Support would be places where it’s bounced
off it in the past, and it looks like it will go up. If it does it enough times, it
forms support, so you can be pretty sure in future, when it hits that, the market’s
going to say ‘hold on, I don’t think it’s going to go below here.” and go up again.
Resistance is the one above – it’ll stop it going up… ‘Support’ below, ‘Resistance’
above… Once you know things like that – even basic things like that, you could
set an order for where you see the support. Do you see what I mean – so I
think, when it gets to there – I think it’s going to go up because there’s a support
level. I’ll set an order at that price… or – if there’s a resistance line you say
‘okay, I think it’s gonna hit that resistance, and it’s going to go back
down – so maybe I’ll set an order.. If it breaks out – if it goes just above that
resistance, then I think it’s going to go to the moon, so I’m going to set an order there.” These are some of the things people can use orders for, okay. So, you can use it, in
conjunction with technical analysis to find the best possible entry points, and
exit points, out of a trade which you already believe in… In simple terms,
that’s the difference between a trade and an order on Etoro.

36 thoughts on “Orders VS Trades On Etoro

  1. Thanks for the explanation, I will come back with more questions though 🙂
    Keep up the good work!

  2. Hello! What is the biggest profit you ever made from copy other people on etoro and with how much? Your videos are very helpful thanks for that!

  3. Another good one ! By the way, found "net invested". Good to see you in the green.

  4. Nice. Keep up those tutorial videos, very useful for beginners who want to learn more about the trading mechanics, and maybe do more than CopyTrade

  5. Another great video , Would love to know how it works that we can make money on the price going down, does eToro lose?
    And why did etoro start buying real bitcoin instead of cfd as before?

  6. Every time I find something I need to answer – I come to your channel and you have answered it in an understandable way!

    Great vid once again, thanks!

  7. Hey,

    Just a quickie.

    Im trying to do a trade of $50 – but eToro says minimum trade is $200, is that right? It won't let me trade anything less.

    Thanks in advance!

  8. Them bells tho lol Great video i just noticed that too today since im new to Etoro ! Keep up the good work

  9. Your videos are really informative and make it easy to understand thanks a lot!

  10. Thank you for the information. I would like to know if Etoro charge a fee to sign up

  11. Thank you!
    I have a question: when i select "Trade", choose my amount (let's say 200$) and press BUY (BTC, for example) are the Bitcoins bought instantly? And when i sell them, are they sold instantly? Or do i have to wait for a seller/buyer? I just discovered Etoro yesterday and these things are pretty unclear and i really want to buy me some Ripple.
    Thanks in advance!

  12. Everybody

    If you have a etoro account then trade on ripple the past few days I've been making money even ripple has beaten ( past ). Etereum
    I love it I put in £200 dollars and now I have 347
    But if you put 2000 then it goes 1000 times better you will earn good profits. ( IF YOU EARN PROFIT YOU EARN MONEY)


  13. Thank you so much for your videos!

    I have started trading on eToro recently, and your confirmation on the authenticity of the Company set my mrs.'s mind at ease.

    learning a lot from your videos!

  14. Hi i just wanted to say thank you.
    I learned a lot from your videos and hope you will keep making them.

  15. please tell me the difference between trading with an "amount 'or with 'units? ' , am new on Etoro and want to place an order. thanks in advance. Love your blog, have subscribed, keep up the good work 🙂

  16. Hi. Maybe a silly question, but can I buy Bitcoin on Etoro and then send it directly to my CryptoWallet without really trading….I just want to buy Bitcoin for the long term investement…

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