What is a TRS?
TRS stands for Total Return Swap. TRS is a MiFID II product, a type of derivative which allows you to be exposed to the price movements of an asset without acquiring the asset directly.
Currently, eToro offers TRSs to residents of certain French territories (French Polynesia, Guadeloupe, Martinique, Mayotte, Reunion Island, Saint Martin, Wallis and Futuna). All new non-leveraged BUY crypto positions opened in these French territories are TRS positions.
Similar to opening a CFD position, when you invest in a TRS position, you agree with the broker to replicate market conditions and settle the difference when the position closes. Your return depends on the market price of the underlying cryptoasset and the size of your position. It is exactly the same return that you would make if you owned the underlying cryptoasset. You will not be able to transfer TRS cryptoasset positions to the eToro Money crypto wallet but you can close your crypto TRS positions at any time. The TRS underlying asset is owned by eToro.
Unlike a CFD, holding a TRS position on eToro does not incur overnight fees. For more information on TRS fees, click here.
The funds you allocate to open a TRS position are payable immediately to eToro. These funds are not treated as ‘client money’, which means that they are not protected in the unlikely event of eToro’s insolvency.
Note: Any existing CFD crypto positions that you currently hold will not be converted to TRS positions.
TRS is considered as a complex, highly volatile and risky product. The value of your TRS may significantly increase or decrease at any given moment. This may result in a loss of all the capital you have invested in it.