You can go short on any asset on eToro by opening up a trade called a Contract For Difference (CFD) which is essentially a contract between you and eToro where you agree to sell an asset and buy it back at a different price at a later point in time. For example, if you’re shorting oil on eToro and the price goes up, you’ll make money from the position but if the price falls then your profit will be less than the amount you invested in the trade. How to Short on eToro.

How to Short on eToro: Step-by-Step Short Selling Guide

However, it’s important to note that going short is considered a riskier strategy as if the price of an asset goes up and you can’t afford to buy it back then you will lose all your investment. For this reason, traders should only use CFDs if they understand the risks involved in trading short positions and have enough capital to cover potential losses.

Another option for those who want to take a more conservative approach is to go long with a long-term investment or by using eToro’s ‘Short-ETFs‘ Smart Portfolio which aims to profit from the declining price of the popular ProShares Short QQQ ETF (which tracks the Nasdaq 100 index). Please be aware that all investing comes with an element of risk and that short-term trading is positioned at the more aggressive end of the spectrum. For more information, visit the eToro Academy to learn about the various risk-return strategies.

…