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Lesson 3. What Is Multiplier?


A Multiplier is one of the major tools in Libertex. It allows you to increase your trade's profit potential.

How does it work? It’s Very simple.

Let's assume you buy  EUR/USD, your investment amount is $50, and your multiplier is one. If the price goes up 10%, your profit will be $5 ($50 x 10%).

However if instead of one you specify 20 as a multiplier your investment amount will rise to $1,000 ($50x20).

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As you can see, your profit has been multiplied by 20, and this is how the multiplier works.

This is like the speed of a car: the greater it is, the faster you reach your destination. However,  high speed brings with it more risk. This is why every car driver chooses a speed which is good for themselves depending on their experience, road surface condition and the traffic code.

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For novice traders, we recommend using a minimum multiplier, which equals 1, in order to avoid risks in case the market moves against you.

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As you acquire skills and experience, you can also increase your multiplier.

Continue to the next lesson to learn how to effectively manage your risks using the Stop Loss order.

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