Multipliers: Leveraged Directional Trading with Fixed Risk

Multipliers are a hybrid trading product that combines the amplified profit potential of leveraged CFD trading with the fixed-risk simplicity of Digital Options.

Core Concept:

• Select Multiplier Factor (e.g., 50x, 100x, or 1000x)
• Factor is ratio by which potential profit is amplified
• Maximum loss capped at initial stake
• Automatic Stop Out protection

Key Characteristics:

• Variable Amplified Profit: Scales with price movement times multiplier
• Fixed Maximum Loss: Cannot lose more than stake
• Automatic Risk Management: Stop Out prevents excess loss

Key Difference from Other Contracts:

• Leverage Without Margin Calls: Fixed risk like Digital Options
• Amplified Profits: Like CFDs but with automatic protection
• Flexible Duration: No fixed expiry, trade until closed

The multiplier factor creates extreme profit potential:

Profit Amplification:

• Every point of favorable movement multiplied by factor
• 50x multiplier = 50x profit per point
• 1000x multiplier = 1000x profit per point
• Exponential returns on small price movements

Automatic Risk Cap:

• Stop Out level calculated automatically
• Triggers when loss would equal stake
• Prevents any loss beyond initial stake
• Safety net for leveraged trading

Strategic Implication: This contract type rewards traders who can predict short-term directional movements and want maximum profit amplification with controlled downside risk.

A Multiplier trade is fundamentally a directional bet amplified by the chosen factor.

Stake and Multiplier:

• Choose Stake: Your capital at risk
• Choose Multiplier Factor (M): 50x, 100x, 250x, 500x, 1000x
• Trade Exposure: M × Stake (but loss still capped at Stake)

Stop Out Level (Risk Cap):

• Automatically Calculated: Platform sets Stop Out when trade opens
• Prevents Excess Loss: Triggers before loss exceeds stake
• Closer with Higher Multipliers: 1000x has tighter Stop Out than 50x
• Automatic Closure: Contract closed immediately at Stop Out

Profit Calculation:

• Profit = (Exit Price - Entry Price) × Contract Size × Multiplier Factor
• Small price movements create large profits
• Amplification works both ways (profits and approach to Stop Out)

Multiplier Factor Impact on Stop Out:

• 50x Multiplier: Wider Stop Out distance, more breathing room
• 100x Multiplier: Medium Stop Out distance, balanced
• 500x Multiplier: Narrow Stop Out distance, sensitive
• 1000x Multiplier: Extremely narrow Stop Out, very sensitive

Trade-Off:

• Higher Multiplier: Greater profit amplification BUT tighter Stop Out
• Lower Multiplier: Lower profit amplification BUT wider Stop Out
• Sweet Spot: Balance between amplification and Stop Out tolerance

Risk Management:

• Stop Out prevents losing more than stake
• Can set manual Stop Loss further from Stop Out
• Take Profit recommended to lock in amplified gains

✅ Multipliers Up Success

Price rises + No Stop Out = Amplified Profit (M × Movement)

❌ Multipliers Up Failure

Price hits Stop Out = Loss Capped at Stake

Understanding Multipliers Up Predictions:

• Success: Price rises without hitting Stop Out = Profit amplified by multiplier factor (e.g., 100x movement)
• Failure: Price hits Stop Out level = Loss automatically capped at initial stake
• Multiplier Factor: Higher multiplier = Greater profit amplification BUT tighter Stop Out distance

✅ Multipliers Down Success

Price falls + No Stop Out = Amplified Profit (M × Movement)

❌ Multipliers Down Failure

Price hits Stop Out = Loss Capped at Stake

Understanding Multipliers Down Predictions:

• Success: Price falls without hitting Stop Out = Profit amplified by multiplier factor (e.g., 100x movement)
• Failure: Price hits Stop Out level = Loss automatically capped at initial stake
• Multiplier Factor: Higher multiplier = Greater profit amplification BUT tighter Stop Out distance

Multiplier Selection Strategy:

• 50x-100x: Conservative leverage, wider Stop Out
• 250x-500x: Aggressive leverage, moderate Stop Out
• 1000x: Maximum leverage, extremely tight Stop Out

High Leverage Potential:

• 50x Factor: 50 points profit per 1 point move
• 100x Factor: 100 points profit per 1 point move
• 1000x Factor: 1000 points profit per 1 point move
• Exponential Returns: Small moves create large profits

Strategic Applications:

• Strong momentum trading
• Breakout exploitation
• High-volatility asset trading
• Capital-efficient position sizing

Risk-Reward Balance:

• Higher multiplier = Greater amplification + Tighter Stop Out
• Lower multiplier = Lower amplification + Wider Stop Out
• Must balance profit potential with Stop Out tolerance

Risk Characteristics:

• High Exposure: Due to leverage amplification
• Fixed Maximum Loss: Risk of capital loss limited to stake
• Rapid Stop Out: High multipliers trigger Stop Out quickly
• Automatic Protection: Cannot lose more than stake

Risk Management Considerations:

• Multiplier Selection: Higher = tighter Stop Out
• Stop Out Proximity: Very close to entry with high multipliers
• Manual Stop Loss: Set further from Stop Out for controlled exits
• Active Monitoring: Watch price proximity to Stop Out

High Variable Amplified Rewards:

• Exponential Returns: Profits amplified by multiplier factor
• Very High Percentage Gains: Small moves create large profits
• Flexible Duration: Hold as long as needed
• Suitable For: Aggressive momentum traders

Strategic Advantages:

• Control large position with small capital
• Fixed maximum loss provides safety
• Amplified profits on correct predictions
• Capital efficiency for directional bets

Statistical Reality:

• High leverage = High sensitivity
• Minor adverse movements trigger Stop Out
• Take Profit essential for locking gains
• Reversals common with high volatility

Confirmed Breakout Exploitation:

• Large Directional Move: Anticipate large directional move without significant retracements
• Confirmed Breakouts: Strong trends with clear momentum
• Amplified Capture: Multiplier captures full movement
• Fixed Risk: Know maximum loss upfront

Market Conditions:

• Confirmed breakouts
• Strong trending markets
• Clear directional momentum
• Minimal retracement expected

Success Factors:

• Requires breakout confirmation skills
• Benefits from momentum indicators
• Suitable for aggressive traders

Volatility Index Trading:

• Large Rapid Swings: Capitalize on large, rapid price movements
• Volatility Indices: Synthetic Indices with predictable volatility
• Downside Protection: Risk strictly limited despite high volatility
• High Returns: Small moves create substantial profits

Market Conditions:

• High-volatility assets
• Synthetic Volatility Indices
• Rapid price swing environments
• Predictable large movements

Success Factors:

• Requires volatility timing
• Benefits from index knowledge
• Suitable for volatility specialists

Strategy Overview: Identify tight consolidation on Volatility Index. Set 500x Multiplier. Place Up trade immediately upon confirmed break above resistance. Set Take Profit to lock in substantial profit and minimize reversal risk.

Execution Steps:

1. Identify tight consolidation pattern
2. Wait for confirmed resistance break
3. Select 500x Multiplier for high amplification
4. Place Up trade immediately on breakout
5. Set Take Profit target to secure gains

Why It Works:

• Breakout provides strong initial momentum
• 500x multiplier amplifies small breakout move
• Take Profit locks gains before reversal
• Fixed risk allows aggressive positioning

Step 1: Select Contract Type

• Navigate to Trade → Multipliers
• Or find in main trading sections
• Select Multipliers contract type

Step 2: Select Asset and Direction

• Choose asset (e.g., Volatility 75 Index)
• Decide on Up (Buy/Call) or Down (Sell/Put)
• Confirm directional conviction

Step 3: Set Stake and Multiplier

• Enter your stake amount
• Choose Multiplier Factor (e.g., 200x)
• Platform shows Stop Out level

Step 4: Set Stop Loss/Take Profit (Critical)

• Stop Loss (Optional): Set manual Stop Loss further from Stop Out for controlled exit
• Take Profit (Recommended): Define profit amount or level to auto-close and lock gains
• Always set Take Profit to secure amplified profits

Step 5: Execute

• Click "Buy" (for Up) or "Sell" (for Down)
• Contract opens immediately
• Monitor price vs. Stop Out continuously

Pre-Trade Planning:

• Calculate Stop Out distance for chosen multiplier
• Define Take Profit target (e.g., 50% profit on stake)
• Plan manual Stop Loss if needed
• Set maximum hold time

During Trade:

• Monitor price proximity to Stop Out continuously
• Watch for Take Profit target achievement
• Track amplified profit in real-time
• Prepare for manual exit if needed

Exit Execution:

• Take Profit Hit: Automatic closure at profit target
• Manual Close: Exit early if market shows reversal signs
• Stop Out: Automatic closure if adverse movement continues

Post-Trade Review:

• Analyze multiplier selection effectiveness
• Review Take Profit placement
• Evaluate if Stop Out was triggered
• Refine multiplier and target strategy

Common Mistake: Always using 1000x multiplier without understanding consequences

Why It Happens:

• Attracted to maximum profit amplification
• Not understanding extremely tight Stop Out
• Chasing highest possible returns

How to Avoid:

• 1000x multiplier has extremely tight Stop Out
• Start with lower multiplier (100x) until proficient
• Understand short-term direction prediction requirements
• Build skill before using maximum leverage

Common Mistake: Letting profits run too long without Take Profit

Why It Happens:

• Wanting maximum profit
• Not understanding reversal risk
• Greed overriding discipline

How to Avoid:

• High leverage means high volatility exposure
• Reversals common and can hit Stop Out quickly
• Always set Take Profit to secure gains
• Lock in amplified profits before market reverses

Key Differences:

• Risk Cap: Fixed vs. fixed vs. variable (unlimited)
• Profit: Leveraged variable vs. fixed vs. leveraged variable
• Protection: Automatic Stop Out vs. expiry vs. margin call

Objective: Experience the Stop Out sensitivity with high multipliers.

Step-by-Step Challenge:

1. Switch to Demo Account and select the Volatility 75 Index

2. Set Maximum Multiplier:

   • Choose highest available multiplier (e.g., 1000x)
   • Use small stake ($10)
   • Note the Stop Out level displayed

3. Place Buy Trade:

   • Execute Up trade immediately
   • Observe price and Stop Out level

4. Observe Stop Out Proximity:

   • Watch how quickly price approaches Stop Out
   • Note minimal adverse movement needed
   • Experience rapid Stop Out trigger

5. Reflection:

   • How close was Stop Out to entry price?
   • How quickly did minor movement approach Stop Out?
   • Understand high sensitivity of maximum leverage

Key Learning: This exercise demonstrates high sensitivity and rapid risk realization of high-leverage multipliers.

Variation 1: Multiplier Comparison

• Place three simultaneous trades: 50x, 250x, 1000x
• Same direction and asset
• Compare Stop Out distances
• Track which survives longest

Variation 2: Take Profit Discipline

• Place 200x multiplier trade
• Set Take Profit at 30% gain
• Monitor profit growth
• Experience automatic exit at target

Variation 3: Capital Efficiency Testing

• Calculate position size with 100x multiplier
• Compare to standard CFD margin requirement
• Understand capital efficiency advantage
• Evaluate risk vs. capital deployed