Trade with Multiplier at IQ Option

Trade with Multiplier at IQ Option

In their latest guide, IQ Option have drawn attention to the risky yet rewarding multiplier option that they have in place on their trading platform.

In a nutshell, the multiplier allows traders to “manage a position that is greater than the amount of funds at his disposal” according to IQ Option. Already by the name “multiplier” it may give you a little insight into how this trading option at IQ Option may help you do that. Indeed, you would be on the right track. When in use, it will calculate profits or losses reflective of the multiplier you have in place.

In the example that IQ Option provides is that in “a $100 deal and using an x5 multiplier your potential profit (and loss) will be calculated as if you were investing $500”. Therefore, it allows you to essentially invest with money you don’t have at your disposal. Of course, this means that whatever multiplier you choose to apply, it will multiplier potential earnings by that if you make the right call but it will also multiply losses if the market takes a dive.

With this considered, it is by nature a very dangerous tool in some instances, but that increased risk is also reflected in the potential benefits on offer. Therefore, the key thing here is that it needs to be used with extreme caution. The most important factor to consider is that it should be used in situations where price movement can be accurately measured. It is certainly not a tool to use on more unpredictable investment options.

It was originally designed to be used on the ForEx market. As IQ Option explains that the reason this is that “currency pairs do not usually demonstrate big price swings, their daily changes are barely enough for traders to speculate on them. Traders turn to a multiplier in order to speculate on small price differences and still receive substantial results.”

However, the tool can be used effectively on most trading products, including Stocks, commodities, and ETFs. The only thing that you do need to consider before opting to use the option is what is important for each investment you wish to use the multiplier on. Specifically, are you going to prioritise lower risk or higher returns?. This decision will determine whether or not you should be using the multiplier.

IQ Option has emphasised the importance of risk management in regards to this and it should be only used by those who know exactly what they are doing. As we have mentioned, the reason for this is because the upside and the loss are multiplied respectively. Therefore, earning money will come at the same rate as losing money and so, if the latter occurs, your losses can be great. As such, IQ Option advises to “avoid using this tool when uncertain about the deal you are about to open”.

If you want to take that risk, then you can choose to use a multiplier when using Forex or Stocks by choosing it from the available trading instruments you find at the top of the screen. You can then choose the multiplier you wish to apply before opening the deal. The size of this will depend on the particular asset you wish to choose. Naturally, the larger the multiplier the higher the potential increased earnings – but also the higher level of risk and loss.

There are many other trading techniques that can and probably should be used before this option, – some of which IQ Option have already created guides about. If you understand the risks attached but still ant to apply the multiplier to your trading though go their platform now.

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News


Binance Suspends SEPA Inward Payments Until Further Notice

Binance Suspends SEPA Inward Payments Until Further Notice Binance has just announced that it has temporarily stopped all incoming SEPA payments. As a result, users will no longer be able to deposit euros using the primary European payments network. The world’s largest cryptocurrency exchange did not provide any specific information regarding the reason behind this […]

12 July, 2021

Why are Crypto Holders Worried of Declaring Their Ownership?

Cryptocurrencies have been popularly regarded as the future of finance globally. Investing in virtual coins has become a lot easier than it was a few years ago with the evolving crypto industry. Over the last few years, Bitcoin has caused a lot of buzz in the market. It has established itself as the de facto […]

8 July, 2021

Bitcoin On The Rebound Following Elon Musk’s Latest Announcement

The price of the world’s largest cryptocurrency is rising again following the latest comments from Elon Musk. Bitcoin’s price has climbed and stayed above $40,000 on Monday 14th June, following an announcement by Musk that Tesla will, once again, start accepting BTC payments. The latest comments have proven once more what a powerful influence the […]

16 June, 2021

Bitcoin Is Now Legal Tender In El Salvador

The world largest cryptocurrency has become a legal currency in El Salvador. Following a congressional vote held on Tuesday, a significant majority agreed to adopt Bitcoin and use it alongside the country’s other currency, the US dollar. In the words of El Salvador’s President, this decision has made “history”. Within the next 90 days, all […]

10 June, 2021

Google Updates Its Advertising Policy To Allow Crypto Ads

Global search engine giant, Google, has announced that it will be accepting cryptocurrency advertisements targeting customers in the US. This change to the tech giant’s financial products and services ads policy is expected to be made at the start of August 2021. As a result, operators of cryptocurrency exchanges and wallets will be able to […]

8 June, 2021

Coinbase Stock Loses Over 25% Since April IPO

It was hailed as one of the greatest moments in cryptocurrency history. The Coinbase IPO was seen as the tipping point of the sector, a moment when cryptocurrencies will finally find their well-deserved place within the financial industry. Interest was high, and when Coinbase (COIN) began trading on the Nasdaq on April 14, 2021, the […]

26 May, 2021
Bitcoin,Cryptocurrency,Social Media

Bitcoin Drops by Over 30% to $30,000 After Another of Elon Musk’s Tweets

Tesla’s CEO and among the top three richest people in the world, Elon Musk, has yet again sent Bitcoin and other altcoins on a wild ride that saw the markets bleed after massive sell-offs. In a flurry of tweets that begun on Sunday, Elon seems to have implied that Tesla would liquidate its Bitcoin holdings. […]

20 May, 2021

Tune In To The 4th Edition of the AIBC Pitch

On the 25th of May 2021, Dubai will once again play host to the much-anticipated Draper-Aladdin AIBC Startup Pitch. 100 companies operating in the exciting fields of AI, Blockchain, Quantum Tech, FinTech, Big Data and IoT will be showcasing their ideas to investors and other stakeholders. Up to $500,000 can be won by any single […]

16 May, 2021