How does the spread affect my investments?

The spread is the difference between the buy and sell price of an asset on the etoro platform. This difference impacts your profit and loss (P&L) and is reflected immediately after opening a position.

For example:

• The buy price of an asset is $100
• The sell price is $98

In this case, the spread is $2.

If you open a buy position with $1,000 at a buy price of $100, you will own 10 units of the asset ($1,000 ÷ 100 = 10 units). If you then immediately close the position at the current sell price of $98, you will receive $980 (98 × 10), resulting in a $20 loss.

This loss is due to the spread, not a change in the asset’s value. Your open position will always display its value using the relevant closing price:

• For buy (long) positions, this is the current sell price
• For short positions, this is the current buy price (where applicable)

As a result, your P&L will typically show a small loss immediately after opening a position.