Short selling Gold On Etoro

Short selling Gold On Etoro , In this Post , i will  explain  how to open a Short Position in  Gold on Etoro platform

Note : Shorting , is risky , please be sure to do your homework and technical Analysis before opening a Short position.

 

What is  Short Selling  Gold?

When you open a Short Position in Gold, you are expecting Gold price to drop in  later Period.

Short Selling Gold means you borrow ” x “number unit s(1 Unit = 1 ounce) of gold from the Broker  ( Etoro ) and then Sell It at market Price.

When the Market Drop  ,  the System will help you buy back  the  ” x “number unit  you borrow and return to the Broker.

What are the Risks ?

• When  the Price rise , you will loose money
• Price action might happen too fast , and swoop pass your Stop Loss amount
• Price Action Direction can always reverse due to  any news catalyst

Before Starting! you will need an Etoro Account  to perform the below action

Check the Article and Video below before  sign Up

Before Signing Up please  read this review on Etoro

Check Whether Etoro  is it Scam ( Review From Youtuber ) ? Here

Will i have a Problem Withdrawing Money From My Etoro Account  ( Youtuber Review)? Here

Click the Link Here  to sign Up, Deposit  Minimum deposit Amount and get  extra $50 USD  free Money for you to Trade

 

 

Short selling Gold On Etoro ( Lets  get Started )

Step 1

Do your Home Work  , do your Technical Analysis ,

(1) Draw your trading Plan

(2) At what Price you will take profit

(3) At what Price you will Stop Loss

 

Step 2

Starting from Step 2, Base on your trading Plan  , we will step through on how open a short position

(1) After Signing Up your Etoro Account  , login to your Etoro Account and Click Trade Market

(2) At your Right Hand side Screen navigate to Commodities and click view all

Step 3

After you Click View All , it will bring you to the Commodities Market Page

(1) Click the Gold Image

(2) Click the Graph  Image

(3) Tile your Web Browser .

Normally for me when opening a trade  , i would  prefer to Tile my browser side by side so i have an Overview of the Price and control towards the  action that i will be executing

 

Tile Browser Side by Side

 

Step 4

Do Some Calculation

or you can use a CFD Commodities Calculator to calculate

Open your Short Position Base on your  trading Plan

My Dummy Plan is as below

(1) Open Short Position : USD $ 1878

(2) Unit to Trade : 100 Unit ( Ounce)

(2) Take Profit : Price Drop  to  USD $1873

(3) Stop Loss : Price Rise to  USD $1881

(4) Leverage :  x 100

Some Calculation : 

Calculate Margin Required to Deposit to Open a Short Position

Margin Required :

Contract Size =  100 unit x 1878

=  USD 187,800

Leverage  applied = 100

Margin Required = USD 187800 / 100

=  USD 1878

Calculate Take Profit

(1) You Borrow 100 Ounce of Gold and sell it at a Price of  USD 1878

(2) When the Price Drop  to your target Price  (USD 1873) , the System will help you buy back 100 Ounce of Gold at  Price USD 1873 , and return to Etoro

(3) Price Difference = USD 1878 – USD 1873 = USD 5

(4) Your Contract Size = 100 Ounce

(5) Take Profit  = USD 5 x 100 Ounce = USD 500( Profit)

 

Calculate Stop Loss

(1) You Borrow 100 Ounce of Gold and sell it at a Price of  USD 1878

(2) Unfortunately the Price Rise to   (USD 1881) , the System will help you buy back 100 Ounce of Gold at  Price USD 1881 to cut your losses , and return to Etoro

(3) Price Difference = USD 1878 – USD 1881 = Negative USD 3

(4) Your Contract Size = 100 Ounce

(5) Take Profit  = – USD 3 x 100 Ounce = USD 300 (Losses)

 

Step 5

Open your Short Position Base on your  trading Plan

 

Set Order Price

(1) Click Trade ( icon)

(2)Select Order

(3) At the Rate Text Box input  the Order Price  in this Case is USD$1878

 

Set The Number of Units ( Ounce ) you want to Trade

(1) On your right hand Side Click the Unit Button

(2) Make sure after you click the Unit Button  , the Label on your right hand side display as unit

(3) Input the number of unit , in this case example is 100 unit

Set Leverage

(1) Click the Leverage Tab

(2) Select the Number of Leverage  you want ,In this case example leverage is set to 100

      Note: More Leverage means more amplified Profit in   contrast  means  more amplified Losses as well

 

Set Stop Loss

(1) Click the Stop Loss Tab

(2) Click Rate Button on your right hand side, after you click the rate button , please make sure that the Label on your left hand Side display as Rate

(3) Input your Stop Loss Price  , in this Case Example is  USD1881

 

Set Take Profit

(1) Click the Take Profit Tab

(2) Click Rate Button on your right hand side, after you click the rate button , please make sure that the Label on your left hand Side display as Rate

(3) Input your Take Profit  Price  , in this Case Example is  USD1873

Step 6

Click the  “Set Order “ Button

After you have done all your Setting , double Check and Click Set Order

When the Price hit your Set Order Price in this case is USD1878 ,

The System will execute a Short Sell Position