Cryptocurrency is slowly taking over the world, and it comes as no surprise that a lot of people want to buy, keep and sell bitcoin and other crypto. Many also enjoy trading conventional assets with a multiplier, as it helps to increase potential profit (although at the expense of additional risk).
But what if you could do both at the same time, and trade cryptocurrencies with a multiplier? This is now a reality on the IQ Option platform. Traders now have access to x3 and x5 multipliers when working with the ‘Crypto’ instrument.
What is a multiplier?
By using a multiplier, the trader can control a position that is greater than the amount of funds at his disposal. For example, when opening a $100 deal and using an x5 multiplier your potential profit (and loss) will be calculated as if you were investing $500. This option can turn out to be valuable, especially when the direction of the future price movement can be accurately predicted.
Why to use it?
A multiplier was originally applied to Forex trading, as it takes forever for a currency pair to demonstrate substantial movements. Traders turn to a multiplier in order to capitalize on barely noticeable price fluctuations. Although cryptocurrencies demonstrate high volatility, the same tool can be applied to bitcoin and altcoin trading. It is up to you to decide what is more important in each particular case, lower risk (no multiplier) or higher returns (with a multiplier). No matter what you choose, it is always beneficial to have more options at your disposal.
How to apply to trading?
In order to use a multiplier, choose ‘Crypto’ from the list of available trading instruments at the top of the screen. Then, before opening the deal, choose the multiplier you want to apply. The latter can set at either x3 or x5. It comes without saying that the higher the multiplier, the higher the potential profit (but also the potential loss).
The use of multiplier is offering outstanding opportunities to people who know what exactly they are doing. However, it should be applied with caution as not only the profit but also the potential loss will be multiplied respectively. Losing your money at an accelerated rate will disappoint the majority of traders and lead to an even greater loss. Avoid using this tool when uncertain about the deal you are about to open.Trade now
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
In accordance with European Securities and Markets Authority’s (ESMA) requirements, binary and digital options trading is only available to clients categorized as professional clients.
GENERAL RISK WARNING
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
73% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.