The higher the multiplier, the higher the trading volume. This increases the chances of making money many times over. How not to be afraid of “serious trading” and what important rules should a trader follow? Let’s learn the basics and show you the details.
How does leveraging with a large multiplier work?
The broker provides you with leverage, which is expressed as a ratio.
For example, a leverage of 1:50 means that you can trade 50 times the volume of your deposit.
If your trade is profitable, you will receive all the profit as if you had traded the entire volume of the trade with your own funds. At the same time, the broker receives nothing but a small commission for the trade.
This is a very easy way to “accelerate” your deposit. You must admit that it’s much easier to make $1,000 with a trading volume of $5,000 ($100 is yours and 50x the multiplier) than to try to make the same money using only $100 from the start 😉
How to make money with a high multiplier?
When opening a position, an experienced trader always knows how much he is prepared to lose in the event of an unsuccessful trade. When trading with a 5x multiplier on the entire deposit, say $1 000, a Stop Loss order is always placed. As a strong price acceleration can destroy the deposit, this is why losses are limited. In the event of an unsuccessful trade, $100 will be lost (conditionally).
Making money from the waves
Trading with high leverage is like surfing the waves. We make money on the long position and immediately open a short position at the highs. When the price falls, we close the position at a profit. And so on all the time.
To trade with a large multiplier, you don’t need to control your risks with a Stop Loss order. If the deposit is conditionally $700, simply enter a $100 position and use the liquidation level as a stop. So adjust your leverage to make sure that the stop won’t be triggered easily.
Trade without taking your eyes off the screen
The higher the multiplier, the faster you should exit the trade. This style of trading is not suitable for those who want to stay in the market for longer.
This method is suitable for intraday traders. On average, a position is open for 2-3 hours. Otherwise, the position can be forcibly closed. In addition, the higher the leverage, the higher the commission (and it is paid daily).
Also, when trading with a large multiplier, remember price acceleration. If a trader doesn’t have time to open a position and the asset has already risen, he shouldn’t activate FOMO. You need to wait for the price level at which the market “gathers” the stops and starts moving in the opposite direction, and then open a position.
Always bear in mind the risks, as even the most successful strategy may not work. Don’t open a position with a large multiplier on your entire deposit (unless you plan to make a quick trade). Controlling your emotions, preparation, and knowledge of your trade will certainly bring profit.
Conclusion
Trading with a large multiplier requires experience. However, it is an indispensable tool for avid traders. With this style of trading, you need to keep a cool head and soberly assess the opportunities offered by the market. Don’t overdo it – take as much as the “wave” offers you. And repeat this in both directions of the trend. If you’re not stingy and get out in time, you’ll certainly be able to earn a large multiplier on an ongoing basis. That’s the main secret.
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