Understanding The Multiplier Effect On Olymp Trade Platform

Simply put, the multiplier is what you explained but it mostly applies to the percentage profit (or loss) added or subtracted from the investment capital.

If you look at the image very well, you will see the percentage difference in the entry or opening price and the current price as indicated on the yield scale (green in profit, red in negative). The multiplier has effect on the percentage of points gained or lost as the price of the asset fluctuates along the yield scale in whatever direction you had predicted.

So, if you use a ×1 multiplier, then it will be the same actual point rate and your investment capital will take a longer time to yield profit or longer time to accommodate fluctuations on the negative scale before it reverses to your positive or profit trend or direction. However, if you had chosen ×10 as I did here, it will be 10 times faster to profit or loss on the yield scale…

Therefore, the multiplier affects the profit or loss estimate based on the value of the stock, the amount of capital invested in that particular trade and the percentage change on the yield scale (i.e. difference between the opening price and current price).

Finally, as traders, we should note that the main difference between Olymp Trade FX platform and MT4 is that only your investment amount is used to calculate your profit or loss multiplier and you can only loss the amount invested in a particular trade and not the total amount in your balance as it is for MT4.

In MT4, all your account balance can be used to leverage your trade back to profit from loss or be lost completely, if the trader fails to apply proper risk and money management rules.

In conclusion, traders can now apply multiplier with better understanding of its likely risk and reward effects on their trading positions. This is expected to help traders make good profits at moderate or minimum risk levels with little or no loss of capital on the Olymp Trade platform.

Trade to Win with Olymp Trade.

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