Here’s a proposition for traders leery about leverage — trade on a leveraged position without the risk of a significant loss.
With Deriv multipliers, you can.
Multipliers offers traders the upside of margin trading with the limited downside of an options trade. It’s a new trade type available now on DTrader.
Say you’re trading with a stake of $100 and a x500 multiplier. Your stake is now leveraged 500-fold. If the market price changes in your favour by 2%, you’re looking at a profit of $1,000. Without the multiplier, you’d only gain $2.
On the other hand, if you’re in a losing position, your risk is limited only to your stake amount.
How? Because of the Multiplier’s default stop out feature. It kicks in automatically to cancel the deal once your losses reach your initial stake amount.
Try multipliers for yourself in 3 simple steps.
3 steps to purchasing your first multipliers trade
Step 1: Choose the multipliers trade type
Select multipliers from the trade type drop-down menu in DTrader.
Step 2: Define your position
Choose your preferred asset. Enter your stake amount. Select the multiplier value you prefer, anything from x10 to x500. Your profit or loss will be multiplied by this amount.
Step 3: Purchase your trade
Click Up or Down to purchase a contract according to how you predict the market will move.
More control, less risks
With multipliers trading, the potential upsides are high, but losses are also possible. The good news is you can never lose more than your initial stake.
Here’s how.
The stop out feature makes sure of that by default, even if you do nothing else after purchasing your trade. Your position will automatically close when your loss equals your stake amount.
Can’t even bear to lose your entire stake amount? Close the trade manually at any time before your stake is wiped out.
Want to automate the process and forget about it? Use the stop loss feature.
Wish to protect your stake in case the market moves against you? Get deal cancellation. You can cancel the deal within a set time of purchasing the contract. If you use the deal cancellation option, your stake will be returned, minus a small fee.
Now that you know how to execute your first multipliers trade, try it for yourself on DTrader.
Read our next blog - Multipliers: Leverage without losing your shirt
