A multiplier is one of the most interesting financial services. By using it, an investor can increase the trade volume and the amount of potential profit.
The maximum coefficient of the multiplier in the Forex mode was x200 until April 2019. Now traders will be able to get even more due to the increase in the multiplier’s value up to x500.
The basics of the multiplier are quite simple: the Olymp Trade broker lends a trader a certain amount of funds for every dollar (or any other currency) that can be used to make trades.
If the trader chooses a x100 multiplier, he or she will receive $100 for $1, if the multiplier value is x500, the trader gets $500. The reader’s own funds are saved on the trader’s account as a security. If a trade made with a multiplier begins to yield a loss, its size will be substracted from this security amount.
The profit is calculated similarly, but this way the trader’s result will be positive.
If you work without a multiplier, the profit will be $1 when the asset goes up by $1. But the x500 coefficient will increase the profit up to $500. This is the main advantage of the tool.
The multiplier increase has affected almost the entire list of currency pairs. The EUR/GBP was the only exception. Due to the ongoing Brexit, is still trading with a limited multiplier. The maximum asset ratio is x100, however, the restrictions will be lifted shortly.
You can find all relevant data on the possible variants of the multiplier in the table.
|The asset||The multiplier options|
|before the change||after the change|
|AUD/CAD, AUD/CHF, AUD/JPY, AUD/NZD, AUD/USD, CAD/CHF, CAD/JPY, CHF/JPY, EUR/AUD, EUR/CAD, EUR/CHF, EUR/JPY,
EUR/NZD, EUR/USD, GBP/AUD, GBP/CAD, GBP/CHF, GBP/JPY, GBP/NZD, GBP/USD, NZD/CAD, NZD/CHF, NZD/JPY, NZD/USD, USD/CAD, USD/CHF, USD/JPY
|50, 100, 150, 200||50, 100, 200, 500|
|EURGBP||20, 30, 40, 50||20, 40, 50, 100|
|Gold, Silver||20, 30, 40, 50||not changed|
|Bitcoin, Ethereum||х5, х10||not changed|
|Ripple, Litecoin, Ethereum classic, Zcash, Dash, LTC/BTC, ETH/BTC||х5||not changed|
The higher the multiplier coefficient, the more you will pay for opening a position. In this case, the final payment amount can be calculated only at the time of the trade due to the constant fluctuations of the asset price. Move the mouse over the line with the word “Commission” to find out its current amount. You won’t be charged a commission for closing a position.
How to enable and change a multiplier?
By default, a multiplier has the maximal coefficient available on the selected asset. To change it, go to the trader’s personal account.
Set the “Choice of multiplier” function in the “Settings” section. After that, you can return to the platform and see a slight change in the part of the trades menu: a multiplier’s change button will appear next to the amount field. Click it to select the option you need.
By using a multiplier you can see the first positive results in the shortest possible time, regardless of the amount of your initial investment. However, Olymp Trade warns that the multiplier is a high-risk tool, which must be used with caution.