Forex Multipier confusion

Discussion in 'Forex' started by Krystian, Nov 15, 2017.

  1. Krystian

    Krystian

    I have been trading on Forex and Crypto for a while now but have never used the multiplier option due to lack of understanding, however yesterday I went away to do some research for a few hours and thought I had it figured out. So I put in a small investement of £30 set take profit to 30% which was equivalent to £10, and put the multiplier on x30. With this I assumed my profits would be multiplied by 30 so a profit of £300. Woke up this morning with the information that my trade was closed and I had made the 30% profit, BUT only £10 profit was made?? Seems like the multiplier had no effect. Similar experience today with Forex and a x300 multiplier - no change in profits
     
  2. doggyfx

    doggyfx


    Multiplier means leverage? With that level of enlightenment about leverage I would strongly advice you to avoid using it on this stage :)
     
    Alexfx79 likes this.
  3. If the "multiplier" is leverage, then multiplying 30X will have no effect on your profit, it will only increase your buying power. In plain English it means that you will be able to control more lot size for less margin in your account.

    The profit (or loss) will only be affected by the lot size you are trading vs the amount of pip movement in the currency pair... not the amount of margin you choose to use on the account. Again, 30 times leverage just means you can control a certain amount of purchasing power by tying up 30 times less of your account equity. This can be lethal if used incorrectly, but very beneficial if used properly (like trading small and adding to long term positions that are going in your favor).

    Best of luck in your trading...
     
  4. Though I have not yet used multiplier options and don’t have any idea about its working process. I have read some journals on it. And it seems to me that multiplier options can be used whenever you make your transactions. And it will allow you to multiple your profit without investing huge money. For example: if you invest $200 and multiplier is 2 then your investment will increase to an amount $400 without investing any money.