How does etoro calculate and present risk?
Last updated: 12 August 2026
The risk score is a key feature offered by etoro that helps you assess the risk of copying other investors or investing via Smart Portfolios.
The score ranges from 1 (very low risk) to 10 (extreme risk) and reflects the overall historical volatility of a portfolio and the assets within it.
Where can I find the risk score?
On the etoro app and the web version of etoro, go to any investor or Smart Portfolio page and select the Stats tab to view the Portfolio Risk card. On etoro AI, there is no separate stats tab. The average risk score is listed at the top of the investor’s or Smart Portfolio’s page.
Understanding the Portfolio Risk card
The Portfolio Risk card includes several tools and metrics designed to help you better understand a portfolio’s historical risk and volatility.
The Avg. Risk Score (last 7D) shows the portfolio’s average risk score over the previous seven days.
The maximum drawdown values show the largest decline in the portfolio’s value over different time periods before recovering.
Select Risk Contribution to view how much each individual asset contributes to the portfolio’s overall risk score.
What affects a portfolio's risk?
Several factors influence how a portfolio's risk score is calculated.
Volatility of individual assets
The more volatile the underlying assets, the higher the overall risk score. For example, cryptoassets, small-cap stocks, and sector-focused investments may experience larger or more frequent price movements than other assets.
Diversification
A portfolio spread across assets that behave differently — or even move in opposite directions — can have lower overall risk. For example, if a portfolio holds both oil stocks and airline stocks, a rise in oil prices that hurts airlines may partially offset losses elsewhere.
Diversification does not guarantee profits or protect against losses.
Long and short positions
Portfolios that mix buy (long) and sell (short) positions can be less volatile because gains on one side may offset losses on the other. Portfolios that are only long or only short tend to move more directly with the market.
Leverage
Leveraged investments amplify both gains and losses relative to the underlying asset. This significantly increases risk – a small market move can have a much larger impact on your position, and you may lose all of your invested capital.
How is the risk score calculated?
Risk is measured by looking at how much a portfolio's value has changed over time. Portfolios with larger or more frequent price movements are considered more volatile and receive higher risk scores, while smaller and steadier movements result in lower scores.
The risk score primarily measures historical price volatility and may not capture all types of investment risk.
Annual volatility reflects how much a portfolio's value has typically moved up or down over the course of a year. For example:
- around 10% volatility has historically resulted in small, gradual price changes
- around 30% volatility may experience more noticeable swings
- above 70% volatility may experience large, frequent movements in either direction
etoro uses the following annual volatility ranges to define risk scores from 1 to 10:
Risk score | Annual volatility range | Risk classification |
1 | From 0% up to 9% | Very low risk |
2 | From 9% up to 13% | Low risk |
3 | From 13% up to 19% | Low–moderate risk |
4 | From 19% up to 32% | Moderate risk |
5 | From 32% up to 51% | Moderate–high risk |
6 | From 51% up to 71% | High risk |
7 | From 71% up to 94% | High risk |
8 | From 94% up to 131% | Very high risk |
9 | From 131% up to 187% | Very high risk |
10 | More than 187% | Extreme risk |
A score of 0 means the portfolio is 100% cash and has zero volatility.
Risk scores are recalculated monthly using historical market data and the current portfolio composition.
Important
The risk score is based on historical data and should not be considered a reliable indicator of future performance. It may not reflect all types of investment risk and does not constitute investment advice. The value of your investments may rise or fall, and you may lose all of your invested capital.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
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