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January 11, 2022

How Deriv's Multiplier (Leverage) works - Margin trading and mechanism

Big Opportunities, Margin Trading Benefits and Tight Low Risk Spreads with Deriv Multipliers.

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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.

Guide to the multipliers offered by Deriv.

Trade on Forex, synthetic indices and cryptocurrencies with Deriv multipliers.

What is a Deriv multiplier

The multiplier allows you to trade with higher amounts than the deposit balance and consequently open a position that greatly exceeds the available funds, each Deriv trader can make use of the use of a multiplier for certain types of assets, such as Forex, synthetic indices and cryptocurrencies.

Multipliers were originally used primarily in forex, as a considerable amount of time is required for a currency pair to prove substantial movements, and investors opted for the use of a multiplier to speculate on little more than perceptible price fluctuations.

The main characteristics of the multipliers offered by Deriv allow traders to be able to invest in trading on margin while having limited risk in options, consequently, when the market is favorable the potential profits will increase dramatically but in the eventuality, it is unfavorable the losses will be limited to the amount invested.

Go to Deriv’s Official Website

The following example with forecast assumptions on a rising market will make the just mentioned even more clear.

With a multiplier of x5
the market is increasing by 25%, the profit will be 25% x $ 100 = $ 25.
With a multiplier of x5.
The market is up by 25%, the profit will be 25% x $ 100 x 5 = $ 125.
With an equivalent position of $ 100 on CFDs with 1: 5 leverage.
The risk is 25% x $ 500 = $ 125 loss.
With a multiplier of x5.
With a 25% drop, there will be a loss of only $ 100, as if the loss reaches the invested amount, the stop-out will automatically be triggered.

Trade with Deriv’s Multipliers

Instruments available for trading Deriv with Multipliers

The tools made available by Deriv for traders on which multipliers can be used are forex, synthetic indices and cryptocurrencies.

Trading on forex (on CFDs), synthetic indices and cryptocurrencies give the possibility of making predictions on the fluctuation of the prices of an asset without necessarily having to buy it and using financial leverage to increase the trading volume by paying no more than a small part of the value of the contract, so that when the market has a positive trend, the potential profits will multiply, but if on the contrary, the market moves against the forecast decided, the losses will be limited to the amount invested.

With multipliers, Deriv clients will be able to trade using financial leverage with a low risk of loss of the capital invested and increasing the multiples will increase the potential gains deriving from any operation on market fluctuations.

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Multipliers on forex with Deriv

Forex Deriv trading with low multipliers and spreads generates great profit opportunities and unmissable opportunities deriving from international events.

All available on the Dtrader platform which with three simple steps will follow each trader in the choice of his trades.

  1. Select an asset.
  2. Monitor the graph.
  3. Place a trade.

The list of forex instruments on which it will be possible to apply multipliers with Deriv are the following.

Major pairs
AUD/JPY – AUD/USD – EUR/AUD – EUR/CAD – EUR/CHF – EUR/GBP – EUR/JPY – EUR/USD – GBP/AUD – GBP/JPY – GBP/USD – USD/CAD – USD/CHF – USD/JPY

Trade with Deriv’s Multipliers

Multipliers on synthetic indices

The synthetic indices are structured in such a way as to simulate global market fluctuations but with an effective reduction of the risks deriving from trading, using multipliers each Deriv client will be able to invest in synthetic indices with reduced spreads and set generation intervals 24 hours a day 7 days a week on the DTrader platform.

The indices available for the Deriv multiplier are as follows.

Volatility Indices 200 and 300.
Resulting from the simulation of markets with constant volatility rates at 200% and 300% and the ticks of the volatility indices are generated every second.
Crash / Boom 300 Index.
These indices create an average of the drop or peak of a given price.

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Multipliers on cryptocurrencies

Trading on cryptocurrencies with Deriv multipliers never closes, 24/7 and every trader can invest his funds at any time, on any crypto instrument and in the way he deems most appropriate.

The following table will list the crypto instruments available for multiplier trading.

Cryptocurrencies available for multiplier trading
Bitcoin Cash – Bitcoin – Ethereum – Litecoin – EOS – Binance Coin – DASH – Ripple – Monero – ZCash

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Trading with multipliers on Deriv

Trading Deriv with multipliers has innumerable advantages, capable of considerably increasing the probability of profit with investments having a relatively low risk.

Excellent risk management.
Each trader will have the ability to customize each contract based on their choices, their trading style, the strategies to be implemented and the risks, taking advantage of innovative features such as stop loss, take profit and cancellation.
Greater exposure to the market.
As the risks of loss are limited to the capital invested, you will gain greater exposure to the market.
Safe and state-of-the-art platforms.
Intuitive, secure and versatile, Able to meet the needs of any trader, from new to the trading world to the most experienced of traders.
Assistance 24/7.
Team of highly qualified experts in the sector capable of supporting and helping traders in every situation and for every problem.
Trading anytime, anywhere.
Each client will be able to carry out their trading with multipliers on synthetic indices 24 hours a day, every day of the year and for forex on weekdays, trading will be available 24 hours a day.
Crash / Boom Indices.
Generate profits from predictions of any market spikes or collapses with the Crash / Boom indices offered by Deriv.

Trade with Deriv’s Multipliers

Contracts with Deriv multipliers

In order to enter into a contract, it will be necessary to initially select the market in which to invest and establish fundamental parameters such as type of trade, amount to invest and value of the multiplier.

Subsequently, in order to take greater control over the trading operations, it is possible to proceed with the choice of optional parameters such as stop loss, take profit and cancellation and if the established positions can be considered satisfactory, proceed with the purchase of the contract.

Go to Deriv’s Official Website

How to purchase the first contracts with multiplier

In order to proceed with the purchase of a contract, you will first need to define your position by selecting an asset from the list of markets available on Deriv and following the steps below.

Type of trade
Select the “multipliers” option from the list of available trade types.
Investment amount
Enter the amount you wish to invest in trading.
Value of the multiplier
Profits and losses vary depending on the value of the multiplier applied which is between 1 and 5 and any losses will not exceed the amount of capital invested

Trade with Deriv’s Multipliers

Optional Parameters

In addition to defining your position in order to purchase a contract, it will be possible to opt for the selection of optional parameters that are essential for greater control over the various trading operations that can be carried out.

Take profit service
When the market moves in favor, through this service it will be possible to set a desired profit level and once the preset amount is reached, the position will close automatically by depositing the earnings on the Deriv cone.
Stop loss
Thanks to which it will be possible to fix an amount of a potential loss, in the event that the market is unfavorable once the predetermined sum is reached the contract will be closed automatically thus limiting the losses.
Cancellation
By paying a small commission it will be possible to cancel any contract within one hour of purchase without losing the entire amount invested.

Once all the necessary parameters have been selected, simply click on “Ascending” or “Descending” and proceed with the purchase of the contract.

Open Deriv’s Trading Account

Important information about trading with multipliers with Deriv

To clarify all the services offered by Deriv that can be used in trading with multipliers, it is necessary to explain as follows.

Stop-out
When a market is unfavorable to the predetermined forecast and the loss reaches the stop-out price, Deriv will close the position regardless of whether or not the stop loss is present.
Multipliers on Crash and Boom
It is not possible to carry out any type of cancellation for the Crash and Boom indices and the stop-out service will automatically close any contract that reaches or exceeds a percentage of the invested capital. The percentage of the stop-out is indicated under the funds invested on DTrader and this percentage varies according to the selected multiplier.
Stop-loss and cancellation cannot be used together.
Service aimed at protecting the customer in case of losses, the cancellation allows you to delete a contract one hour before opening while through the stop-loss service it is possible to close a contract in appraisal if the market turns against it.
In the event that the cancellation reaches the term of use, it will be possible to use the stop loss on an open contract.
Take profit and cancellation cannot be used in the same contract.
When purchasing a contract with multipliers with the cancellation option active, it will not be possible to use the take profit service.
The delete and close options are not allowed simultaneously.
Proceeding with the purchase of a contract equipped with the cancellation service, you can click on the “cancel” button and receive the full amount invested but by clicking on the “close” button the position will be closed at the current price with the risk of loss in the unfavorable market case.

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