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January 15, 2021

Question:Deriv's leverage and multipliers. Which is better?

Deriv - What's now?

Note that the website Hercules.Finance does not promote or introduce the service of Binary Options.

Answer:

Deriv does not provide the service to residents in USA, Canada, and Hong Kong, or to persons below 18.

Difference between Deriv’s leverage and multipliers

Deriv offers 2 main tools for traders to increase their trading volume.

Both leverage and multipliers practically increase the trading volume of your orders with an intention to earn a larger amount of profit while using a small amount of margin or stake.

So what are the differences between Deriv’s leverage and multipliers?

Deriv’s leverage

The relationship between margin and leverage

Deriv’s leverage trading (margin trading) is a traditional way of online trading.

With the leverage up to 1:500, you can trade a position with a larger volume while being required a small amount of margin, that is precisely 500 times smaller.

For example with Deriv’s 1:500 leverage, you can trade 500 USD worth of position with only 1 USD.

The leveraged trading will increase your trading volume, and this will also increase the profit and loss incurred to your account.

Trade with Deriv’s Leverage

Deriv’s multipliers

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

Deriv’s multipliers is an advanced feature unique to Deriv’s platform.

Just like the leverage, the multipliers will increase the amount of “stake” you have.

What’s great about the multipliers is that your profit is multiplied by the multipliers, but the loss is limited to your specified stake.

For example, if your stake is 100 USD, then you could lose only up to $100 while you have a chance to win a larger amount of profit.

With a x500 multiplier, if the market goes down 2%, you'll lose only $100. An automatic stop out kicks in if your loss reaches your stake amount.

For more information about the fund deposit and withdrawal methods available for Deriv, visit the page here.

Find out more about the difference between Deriv’s Margin Trading (Leverage) and Multipliers on the page here.

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