Q&A: Cryptocurrency Stop Loss Update

Update 25/12/2018: As of December 25, 2018 and until June 30, 2019, we will reopen certain long (BUY) underlying cryptoasset positions that closed at a Stop Loss of 100% of the initial invested amount. Manually closed, or positions whose Stop Loss has been edited, shall not be reopened. This policy is aligned with our superior standard of customer service, as our clients’ satisfaction is of the utmost importance to us.

On February 21, 2018, we applied a change to the way the units of trades are calculated, in order to more accurately reflect market prices.

In the past, the calculation of units traded was based on the SELL (bid) price, regardless of whether the trade was a Buy or a Sell position. As a result, any BUY trade opened before February 21, 2018 received a higher number of units because the unit calculation was based on the SELL (bid) price, which is always lower.

Since the update, units for BUY trades are calculated according to the BUY rate and units for SELL trades are calculated according to the SELL rate.

As a result of the way in which units were calculated prior to the February 21 update, positions opened before this date may still have a Stop Loss rate which is higher than the lowest possible rate of 0.0001 or 0.01 (see minimum rate below), even though that rate equates to a loss of 100% of the amount invested in the trade.

In December 2017, we disabled the Stop Loss on all cryptoasset positions. As part of this update, the default Stop Loss on new trades was set to 100% of the invested amount and we disabled the ability to edit Stop Loss on all non-leveraged Crypto positions. This decision was not taken lightly. However, it was one that we felt was necessary considering the highly volatile nature of this type of instrument.

Why do I need to add funds to the trade in order to extend my SL?

If you wish to extend your Stop Loss to the lowest possible rate, you will need to add funds to the position in order to cover the additional margin between your current Stop Loss, which is already set to 100% of your invested amount, and the maximum Stop Loss rate of 0.0001 or 0.01.

How much do I need to add to my position in order to extend my SL?

The amount needed per trade can be calculated using the following formula (for non-leveraged BUY crypto positions only):

(Current Stop Loss rate – Maximum Stop Loss rate) * Units = amount needed to extend SL
Update 25/12/2018: We refer your attention to our policy described above.

How do I know if my positions are already at the maximum allowable rate?

The following are the maximum Stop Loss rates for each cryptocurrency:

Neo = 0.01

BTC = 0.01

BCH = 0.01

LTC = 0.01

DASH = 0.01

ETC = 0.0001

ETH=.0001

XRP = 0.0001

XLM = 0.0001

Therefore, if the Stop Loss on your open crypto positions is one of the above, you will not be able to extend it further. Please note that we are unable to fulfill requests to change the Stop Loss to any other rates. You are able to see your current Stop Loss in your portfolio screen.

If these positions have No SL, why isn’t my Stop Loss at zero?

Currently, the eToro platform is optimised as a trading platform, and therefore, every position must have an SL rate. No SL means that the Stop loss is actually placed at 1 pip (the lowest available rate), which is effectively zero. As long as the SL is set to “No Stop Loss,” the coin would have to be worthless, for all intents and purposes, for the position to close (when the price reaches 0.0001 or 0.01).

By adding the required amount of additional funds, your Stop Loss will be extended to the lowest possible rate, which is, in essence, equivalent to not having a Stop Loss.

Once I have the funds available in my balance, how can I extend my SL?

As soon as you have calculated the amount needed to make the adjustment, and the funds are available in your balance, please contact customer service. A representative will get back to you to confirm that your request has been placed and let you know when the relevant adjustment will be made. Update 25/12/2018: you may manually extend your Stop Loss.

Why aren’t my positions adjusted as soon as I put the request in?

Due to the fact that this action requires a system update, we process all requests for crypto Stop Loss extensions on Sundays only, when most markets are closed and any interference with trading is minimised. Update 25/12/2018: you may manually extend your Stop Loss.