Deriv - What's now?
Note that the website Hercules.Finance does not promote or introduce the service of Binary Options.
Deriv does not provide the service to residents in USA, Canada, and Hong Kong, or to persons below 18.
What is Deriv’s multiplier?
Deriv’s multiplier is a tool that allows traders to amplify their potential profit or loss on a trade.
Essentially, the multiplier allows traders to trade with more capital than they have in their account.
To start using Deriv’s multiplier, you need to open a trading account with Deriv and deposit funds.
Then, you can select the multiplier option when placing a trade and choose the desired multiplier amount.
Using Deriv’s multiplier carries a high degree of risk, as it amplifies both potential profits and losses.
Traders should ensure that they have a sound trading strategy and risk management plan in place before using the multiplier.
The main difference between Deriv’s multiplier and leverage is that with the multiplier, the trader can choose the exact amount of capital they want to trade with, whereas with leverage, the broker typically sets a fixed leverage ratio.
Additionally, the multiplier may be available for a wider range of instruments than just forex, which is the primary market for leverage.
Open Deriv MT5 account to start trading
Deriv MT5 is an online trading platform offered by Deriv that provides access to a range of financial markets, including forex, commodities, and stocks.
The platform is an advanced version of the popular MetaTrader 5 (MT5) trading platform.
To open a Deriv MT5 account, you need to sign up on the Deriv website and complete the account registration process.
You will need to provide some personal and financial information, including proof of identity and address.
Once your account is verified, you can deposit funds and start trading on the platform.
The main characteristics of Deriv MT5 include:
- Multiple markets:
- Deriv MT5 offers access to a range of financial markets, including forex, commodities, stocks, and cryptocurrencies.
- Advanced charting:
- The platform has advanced charting features that allow traders to perform in-depth technical analysis of price movements.
- Automated trading:
- Deriv MT5 supports automated trading through the use of expert advisors (EAs) and custom indicators.
- Multiple order types:
- Traders can place a variety of order types on Deriv MT5, including market, limit, and stop orders.
- Mobile trading:
- Deriv MT5 is available as a mobile app, allowing traders to access their accounts and trade on the go.
- Deriv MT5 uses advanced security features, such as two-factor authentication and encryption, to protect traders’ accounts and data.
To open an account with Deriv and start trading on MT5, go to the page below.
Try advanced Deriv DTrader today
Deriv DTrader is a web-based trading platform offered by Deriv that is designed for quick and easy trading of binary options and digital options.
The main merits of using Deriv DTrader include its simplicity and ease of use, which make it ideal for beginners who are new to trading.
The platform is user-friendly and offers a streamlined interface that allows traders to place trades quickly and efficiently.
Additionally, Deriv DTrader provides traders with access to a wide range of markets, including forex, commodities, and cryptocurrencies.
On Deriv DTrader, traders can trade a range of financial instruments, including binary options and digital options, on a variety of markets.
Binary options are a type of option where the payout is either a fixed amount of money or nothing at all.
Digital options are a type of option that pay out a fixed amount of money if the underlying asset price is above or below a certain level at the time of expiration.
Traders can also access real-time charts and analysis tools to help inform their trading decisions.
What is leveraged trading?
Leveraged trading is also known as margin trading, which means using smaller funds to establish and control a financial contract with greater value.
For example, suppose we want to buy 1 lot of 100 ounces of gold when the price of gold is 1900 USD per ounce.
The value of this transaction is 1900 * 100 = 190,000 US dollars.
Let’s look at the situation of not using leverage and using 200 times leverage respectively:
Funds required for this trade without leverage = 190,000 USD
Funds required for this transaction when using 200 times leverage = 190000 / 200 = 950 USD
Using 200 times leverage, we only need to prepare a deposit of 950 USD to carry out this transaction with a contract value of 190,000 USD.
Leverage is widely used in the financial market. Many brokers can provide leverage to customers in stocks, futures, commodities, foreign exchange, and gold trading.
Home mortgages, which many people have, are also actually leveraged transactions.
The concept and function of margin
The above example mentioned the concept of “margin”, which is not a charge or cost, but a deposit that needs to be paid in advance to establish a transaction.
After the transaction is completed, the security deposit will be returned to the account.
Assuming that the initial net value of our account is 2,000 USD, and the margin for buying 1 lot of gold is 950 USD.
Regardless of transaction costs, the used margin of the account after buying is 950 USD, and the available margin is 2000 – 950 = 1050 USD.
In this case, the free margin is 1050 USD which is used to cover trading profits and losses, and to open new positions.
After the trade is closed, the used margin will be released and reused as a usable margin for further tradings.
Leverage ratio (also known as margin ratio) is the same concept but expressed in different ways.
For example, 100 times leverage has exactly the same meaning as a leverage ratio of 1%. You can divide 1 by the leverage ratio, and then convert the decimal into a percentage to get the leverage ratio.
Benefits of Using Leverage
The advantages of leveraged trading are obvious.
Its appearance allows investors to leverage a transaction worth several times or even hundreds of times with only a small initial investment, greatly reducing the transaction threshold.
Risks of leveraged trading
After using leverage, the profit and loss of the transaction is calculated based on the value of the contract traded, not the value of the margin invested.
Let’s take the example of buying gold to illustrate, the initial capital of your account is 2000 USD, and the price of gold is 1900 USD.
Trade without leverage
You can only buy 1 ounce After buying 1 ounce, if the price of gold rises by 1 dollar, you will make a profit of 1 dollar.
If the price falls by 1 dollar, you will lose 1 dollar.
Trade with 200 times gold leverage
After using 200 times leverage, 2000 USD of funds can buy 2 lots (200 ounces) of gold.
For the convenience of calculation, assuming that you only buy 1 lot of gold, if the price rises by 1 dollar, you will make a profit of 100 dollars.
If the price falls by 1 dollar, you will lose 100 dollars.
To some extent, leverage magnifies the profit and loss of transactions, which is also a high-leverage transaction risk.
How to control the risk of leveraged trading
In the previous case of buying gold, there are 2000 USD in the account and the price of gold is 1900 USD, and then compared the difference between buying the same 1 ounce of gold with and without leverage:
Without leverage, there are only 100 USD left for other investments after buying.
With leverage, there are 1990.5 USD left for other investments after buying.
Obviously, in terms of the same number of transactions, the use of leverage has greatly improved capital utilization and reduced opportunity costs.
Therefore, the risk depends more on the size of the trading position than leverage.
Leverage itself has no risk, the risk comes from the abuse of leverage by investors.
The greater the leverage, the larger the position that the trader can trade, and the larger the position, the greater the risk.
Why choose Deriv to invest in financial markets?
Deriv is a financial technology company that provides online trading and investing services to clients around the world. The company was founded in 1999 and is headquartered in Malta.
|Service||Deriv.com is an online trading platform that offers forex, commodities, cryptocurrencies, and synthetic indices.|
|Features||It provides charting tools, technical analysis, risk management tools, multiple account types, a customizable interface, and demo accounts.|
|Regulation||Deriv.com is regulated by the Malta Financial Services Authority (MFSA) and the Labuan Financial Services Authority (LFSA).|
|Accessibility||The platform is accessible in over 140 countries, offers support in multiple languages, and provides various payment options including credit/debit cards, e-wallets, and bank transfers.|
Deriv’s service is attractive for a number of reasons.
Firstly, the company offers a range of trading platforms that cater to different types of traders, including beginners and experienced traders.
Additionally, the company provides access to a wide range of financial markets, including forex, commodities, and cryptocurrencies.
Deriv also offers a range of trading tools and educational resources to help traders improve their skills and make more informed trading decisions.
Furthermore, the company places a strong emphasis on security, using advanced encryption and other security measures to protect client data and funds.
With Deriv, clients can trade a variety of financial instruments, including forex, commodities, stocks, and cryptocurrencies, using a range of trading platforms.
They can also invest in digital options, which are a type of financial derivative that allow traders to profit from price movements in a wide range of markets.
Additionally, clients can access a range of trading tools and educational resources to help improve their trading skills and knowledge.