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.

Recently Similar News

casinoin-promotion etoro-promotion

Latest Guides

Latest News

CoolWallet,Crypto Wallets,Cryptocurrency,Social Media

Read the CoolBitX and Horizen AMA

CoolBitX and Horizen hosted an AMA together and if you missed it, you can read a rundown of the event on the CoolWallet website now. The exchange platform that is part of the CoolWallet crypto wallet are in partnership with Horizen to create the Horizen CoolWallet. Their two respective social media team took the time […]

6 June, 2020
BitPanda,Cryptocurrency,Exchange Platforms,Promotion

BitPanda Celebrate Ontology Listing With 3 Giveaways

BitPanda has listed the Ontology project and to celebrate they are offering players the chance to get involved in a giveaway. The project has seen a listing on a number of other platforms in the last 8 months, including CEX and EXMO. This has substantially raised the profile of the blockchain that focuses on solving […]

6 June, 2020
CFD Trading Platform,Investment,Trading

Biggest News Stories of the Week, According to have outlined what they believe were the biggest stories of the week for the trading world. The CFD trading platform, have been active this week providing users with a rundown of stories that were going to affect the market. Now, with the week at a close, they have outlined their top picks for […]

5 June, 2020
CFD Trading Platform,eToro,Investment

eToro Who Suffered and Gained During Lockdown

While many companies suffered during the 3-month lockdown that came as a result of Covid-19 others have prospered. In their latest Twitter, eToro has outlined who exactly has gone up or down during this time. What most people will be most interested in is likely the biggest gainer and this title goes to Blue Apron, […]

5 June, 2020
CEX,Cryptocurrency,Exchange Platforms

CEX Launch USDT Trading Account

CEX have expanded their trading account possibilities with the option to create and use USDT-based trading accounts. This follows on from an earlier addition of ETH-based trading accounts and will follow an identical set-up, except these accounts will focus specifically around USDT. This is ideal if you have a lot of focus on the stablecoin […]

4 June, 2020
cfd,CFD Trading Platform,Investment,Trading

XTB Detail List of Rollovers

The exchange platform, XTB have posted a list of assets whose delivery dates will change. This means that when markets close today, the selected assets will have different delivery dates. The assets in question are BUND10Y, BUND10Y+, BUND10Y., BUND10Y, as well as SCHATZ2Y, SCHATZ2Y+, SCHATZ2Y. and SCHATZ2Y. The difference between prices between now and futures […]

4 June, 2020
CFD Trading Platform,Investment,Trading

US Nonfarm Payrolls and Unemployment Rate Set For Release have alerted users of the US Nonfarm Payrolls and Unemployment Rate which is set to be released on June 5th. The platform made users aware of the news over their Facebook page with their latest post detailing the release of the data on Friday. The post explained that “this is always a market mover […]

3 June, 2020
CFD Trading Platform,Plus500

Plus500 Announce New Sponsor, BSC Young Boys

Plus500 have unveiled their new sponsor, BSC Young Boys Football Club. Ths Swiss outfit, BSC Young Boys will join a selection of other existing partners of the CFD trading platform, which include Atletico Madrid from the Spanish La Liga and Australian Rugby team, Plus500 Brumbies. As such, the BSC Young Boys join a good alumnus […]

3 June, 2020