The level of the multiplier you choose usually depends on your trading strategy. But, together with the ability to magnify profits, it is important to remember that leverage can also lead to greater losses.
In Movo, you can set the multiplier level from as low as 1x to the maximum level allowed for each asset.
When setting a multiplier, you should consider the following:
The absolute amount of risk you are comfortable with — the greater the amount of money you plan to trade for compared to your total savings, the lower level of the multiplier is recommended.
Asset volatility — the higher the volatility or expected volatility growth of an asset, the lower level of a multiplier is recommended.
Trading strategy — the longer your investment horizon, the lower level of multiplier is recommended.