What is Multiplier and how does it work?
In your trading activities, you can use leverage, or multiplier, which is a feature increasing your trade's profit potential; however, it increases your risk, too.
A Multiplier is one of the major tools in Libertex. It allows you to increase your trade's profit potential. How does it work? It’s Very simple. Let's assume you buy EUR/USD, your investment amount is $50, and your multiplier is one. If the price goes up 10%, your profit will be $5 ($50 x 10%). However if instead of one you specify 20 as a multiplier your investment amount will rise to $1,000 ($50x20). As you can see, your profit has been multiplied by 20, and this is how the multiplier works. This is like the speed of a car: the greater it is, the faster you reach your destination. However, high speed brings with it more risk. This is why every car driver chooses a speed which is good for themselves depending on their experience, road surface condition and the traffic code. For novice traders, we recommend using a minimum multiplier, which equals 1, in order to avoid risks in case the market moves against you.
In your trading activities, you can use leverage, or multiplier, which is a feature increasing your trade's profit potential; however, it increases your risk, too.
A Multiplier is one of the major tools in Libertex. It allows you to increase your trade's profit potential. How does it work? It’s Very simple. Let's assume you buy EUR/USD, your investment amount is $50, and your multiplier is one. If the price goes up 10%, your profit will be $5 ($50 x 10%). However if instead of one you specify 20 as a multiplier your investment amount will rise to $1,000 ($50x20). As you can see, your profit has been multiplied by 20, and this is how the multiplier works. This is like the speed of a car: the greater it is, the faster you reach your destination. However, high speed brings with it more risk. This is why every car driver chooses a speed which is good for themselves depending on their experience, road surface condition and the traffic code. For novice traders, we recommend using a minimum multiplier, which equals 1, in order to avoid risks in case the market moves against you.