How To Trade Multipliers Using Synthetic Indices

What Are Multipliers From Deriv?

Multipliers from Deriv offer a great way of limiting risk and increasing potential profits from your trades. When the market moves in your favour, you'll multiply your potential profits. If the market moves against your prediction, your losses are limited only to your stake.

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For example, let's suppose you predict that the market will go up and you stake $100.

Without a multiplier, if the market goes up by 2%, you'll gain 2% * $100 = $2 profit.

With a x500 multiplier, if the market goes up by 2%, youll gain 2% * $100 * 500 = $1,000 profit.

So with Deriv multipliers, you have the opportunity to magnify your profits while you will only lose your stake should the trade go against you. This is one advantage of trading synthetic indices.

How To Trade Multipliers Using Synthetic Indices On DTrader

Define your position

1. Market

Start by opening your Deriv account
Log in to your Deriv account and start by choosing the synthetic index you want to trade using multipliers. You can also trade multipliers using other markets like currencies

2. Trade type

Choose ‘Multipliers’ from the list of trade types.

3. Stake

Enter the amount you wish to trade with. This is the amount you are willing to risk in the trade

4. Multiplier value

Enter the multiplier value of your choice from x100 to x1000. Your profit or loss will be multiplied by this amount.

Set optional parameters for your trade

5. Take profit

This feature allows you to set the level of profit that you are comfortable with when the market moves in your favour. Once the amount is reached, your position will be closed automatically and your earnings will be deposited into your Deriv account.

6. Stop loss

This feature allows you to set the amount of loss you are willing to take in case the market moves against your position. Once the amount is reached, your contract will be closed automatically.

7. Deal cancellation

This feature allows you to cancel your contract within one hour of buying it, without losing your stake amount. Deriv charges a small non-refundable fee for this service.

Purchase your contract

8. Purchase your contract

Once you are satisfied with the parameters that you have set, select either ‘Up’ or ‘Down’ to purchase your contract. Otherwise, continue to customise the parameters and place your order when you are satisfied with the conditions.

Things to keep in mind when trading multipliers using synthetic indices

Stop out
With or without a stop loss in place, Deriv will close your position if the market moves against your prediction and your loss reaches the stop-out price. The stop-out price is the price at which your net loss is equal to your stake.

Multipliers on Crash and Boom
Deal cancellation isn’t available for Crash and Boom indices. The stop-out feature will close your contract automatically when your loss reaches or exceeds a percentage of your stake. The stop-out percentage is shown below your stake on DTrader and varies according to your chosen multiplier.

You can’t use stop loss and deal cancellation features at the same time.
This is to protect you from losing your money when using deal cancellation. With deal cancellation, you are allowed to reclaim your full stake amount if you cancel your contract within an hour of opening the position. Stop loss, on the other hand, will close your contract at a loss if the market moves against your position.

However, once the deal cancellation expires, you can set a stop loss level on the open contract.

You can’t use take-profit and deal cancellation features at the same time.
You can’t set a take-profit level when you purchase a multipliers contract with deal cancellation. However, once the deal cancellation expires, you can set a take profit level on the open contract.

Cancel and close features are not allowed simultaneously.
If you purchase a contract with deal cancellation, the ‘Cancel’ button allows you to terminate your contract and get back your full stake.

On the other hand, using the ‘Close’ button lets you terminate your position at the current price, which can lead to a loss if you close a losing trade.