On eToro, some positions are secured with real assets, and others use CFDs.
Trading real crypto assets means that we purchase the tokens on your behalf and register them in a segregated account under your name. Once the position is closed, we sell the coins on your behalf, and the invested amount +/- any profits or losses are converted to fiat currency.
CFD stands for Contract for Difference. CFD trading enables you to trade an asset by engaging in a contract with eToro to replicate market conditions without buying the underlying asset. Click here to learn more about CFDs. Any CFD trade will be marked 'CFD' in the trade line.
The type of crypto position depends on the direction of the trade (BUY or SELL), use of leverage, and the regulation that is applicable to you. To find out which regulation your account is under, please click here.
For clients of eToro (Europe) Ltd:
All SELL (short) positions are CFDs.
From 3 September 2017, non-leveraged BUY (long) crypto positions are secured with real assets. Any such positions opened before this date were upgraded to real assets on 13 May 2018.
From 12 August 2019, BUY crypto positions with x2 leverage (excluding copy trading and CopyPortfolio transactions) are secured with the real asset. “Margin Trading” is used to leverage these trades. This offering does not apply to clients who are residents of China.
For clients of eToro (UK) Ltd, all leveraged and SELL (short) crypto positions are CFDs. Non-leveraged BUY (long) crypto positions are secured with real assets.
For clients of eToro Aus Capital Pty Ltd, all crypto positions are CFDs.