How does Stock Margin work on etoro?

Stock Margin allows you to buy U.S. stocks using leverage, meaning you can borrow funds from etoro to increase your market exposure. You invest part of the amount (your margin), and etoro provides the rest as a loan and charges an overnight fee. You only pay overnight fees on the borrowed amount, not your full exposure.

How does it work?

When trading stocks with margin, you can choose to trade with x2 or x4 leverage.

• With x2 leverage, you provide 50% of the total position value and etoro provides the other 50%.
• With x4 leverage, you provide 25% of the total position value and etoro provides the remaining 75%.

For example:

• If you invest $500 using x2 leverage, your total market exposure becomes $1,000.
• If you invest $250 using x4 leverage, your total market exposure becomes $1,000.

You can adjust the Stop Loss (SL) and Take Profit (TP) directly from the trade or edit screens. The maximum SL permitted when you open a position is 50% of the position amount. If you extend the SL beyond 50%, you must add extra funds, which reduces the loan amount and therefore the overnight fees.

The profit and loss (P&L) works the same as any leveraged trade:

P&L = (Close price – Buy price) × Total number of units

When you close a position, the borrowed funds are automatically repaid, and you receive or pay the total P&L based on the full exposure.

Check what fees apply to Stock Margin trades.

Do I own the shares?

Yes. Since you own the underlying shares:

• You may receive dividends
• You may participate in voting at company meetings
• You may be eligible for corporate actions such as stock splits or mergers

What assets can I trade with Stock Margin?

You can currently trade over 3,000 U.S. stocks available on etoro.

How are Stock Margin trades shown in my account?

Stock Margin positions appear in your portfolio with a label ‘MARGIN’ next to the stock name.

In your account statement, you will also see an entry each time you:

• open a position and receive a loan
• were charged an overnight fee (daily or weekend)
• partially or fully close positions
• add or remove margin (adjusting the loan size) when editing the SL beyond the 50% limit

Important notes:

• Stock Margin trades follow U.S. market hours and include extended trading sessions (pre-market, after-hours, and 24/5 where applicable).
• Stock Margin trades are not available for CopyTrader™ and swap-free accounts.
• Stocks bought with Stock Margin are not eligible for stock lending.
• When a stock issues a dividend or undergoes a similar corporate action, eligible holders may be entitled to a cash or stock distribution. However, leveraged positions are subject to Stop Loss, which may cause the position to close if the price moves sharply. Learn more here.