A multiplier (multiplicate — multiply, multiply, increase) is a means that allows you to multiply the available capital on your balance.
Multiplier helps to increase your deposit by 2 or even 30 times.
Thus, you earn twice:
- On your deposit.
- On additional funds — on the multiplier.
That is, the multiplier multiplies your potential profit. With it (at a rate of 5 to 1) you will earn 5 times more than without it.
Example of trading with a multiplier
Now we have a general idea of what a multiplier is in trading. But to understand how it works, let’s look at some examples.
Suppose a trader wants to buy 100 USD worth of BTC/USDT with a multiplier of 1 in 20. He deposited 100 USD, then chose a multiplier of 20x and opened a Long position. So the total amount he is trading has grown to 2000 USD.
100 USD х 20 = 2000 USD
In case of asset growth, our trader will take all the profit from the deal for himself. He does not need to share it with anyone.
Example of equity capital increase with different multiplier sizes
|Amount to trade
Pros of the multiplier
- Allows you to trade amounts larger than the size of your own capital.
- Many times cheaper than borrowing money from the bank at interest to trade a large sum.
- The additional amount of money is always at hand — click and add capital to the position.
- Multipliers allow you to minimize your own budget. That is, you can open several positions at once, and multipliers will add capital both here and there.
Cons of the multiplier
Among the disadvantages of the multiplier is the human factor. The very realization that you are not trading with your own money increases the level of responsibility. But if you adhere to the rules of risk management and use Stop Loss orders, which exclude the possibility of forced closing of a position, and Take Profit, you risk less. Thus, you will not miss profit if the price goes sharply in your direction, and you will not be able to close the position (it will happen automatically). Also, by placing a Stop Loss limit order, you will not lose money in case of a movement opposite to your position.
A small disadvantage is the payment of commission when opening a position with a multiplier.
What is the multiplier size available on Movo?
- There are 9 multipliers available in the Movo trading app: from 1x to 50x.
- But for each pair the multiplier size may differ.
- So for the BTC/USDT pair, multipliers from 1x to 30x are available.
- And for the pair with S&P 500 index (SPX/USDT) — from 1x to 50x.
How to use the multiplier on Movo
A few simple steps separate you from making money from the price changes of cryptocurrencies and stock market assets. Discover Movo’s trading app – simple and reliable to use!
- Install the Movo app on Android.
- Make a quick registration.
- Make any deposit.
- Select an asset to trade and enter the amount you are going to trade.
- Add a multiplier (1x to 50x).
- Click Long (if you think the price will go up) or Short (if you think the price will go down).
- That’s it. The trade is open — wait for the profit and take your money 🙂
Experience easy and affordable trading with multiples in the Movo app!Download the App