The Olymp Trade leverage explained: How to use the multiplier


Olymp Trade is a well-known trading platform that has become one of the strongest financial industry players. Over time, this platform has earned high status in the trading market and has become a reliable partner for numerous traders.

Whether you are a small investor or a professional trader, Olymp Trade will always help you securely invest your trading money in the market. In addition, this online trading broker also offers better tools that you can use to hone your trading skills – for example, the Olymp Trade leverage.

olymp trade 60-second-trading

Furthermore, Olymp Trade allows you to use your trading strategy to draw profitable outcomes. So, if you have never tried binary options trading, this is your chance to do it in the best possible way.

But what about the Olymp Trade leverage? Can you trade Olymp Trade without leverage, or can you use it? Keep reading this post to get the answer.

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(Risk warning: You capital can be at risk)

What is leverage?

Are you wondering what leverage is? Well, it is a tool that you can use for making better and larger market investments. Since trading brokers add their own money to increase the trade volume, it is also called a multiplier.

leverage

The added value helps the traders to increase the trade volume and open more deals to earn more money. This thing has made leverage stock trading so popular. Leverage helps the traders to make more money even by investing less money. Additionally, traders can diversify their investment portfolios using the same funds. 

How does leverage work? 

Leverage, also called a multiplier, works on a simple concept. The broker lends them a certain amount of money for every dollar the registered Olymp Trade clients invest. For instance, if the traders use the x10 leverage option, they are likely to get $10 for each invested dollar. 

Here’s how you can calculate the profit using the multipliers: 

(Difference between the opening and closing of the trade / Current price) * Investment’s volume *Multiplier – Commission = Profit.

olymp trade leverage

Let’s imagine that you choose to open trade for USD/JPY, where the closing price is 105.5, and the opening price is 105. You made an investment of $100 with a multiplier of x500. In this situation, you can get a ((105.5 – 105) / 105.5) * 100 * 500 – 4 = $232.9 in profit.

Remember that some of the funds get saved as security, which cannot be used for opening new trades. If you want to use the security funds, you must close the existing trade. In case your current trade ends out of the money, the total loss amount will be subtracted from the secured funds. 

It’s also important to note that different trading assets have different leverages. Depending on the asset’s characteristics, the multiplier’s size differs. 

➥ Sign up with Olymp Trade for free now!

(Risk warning: You capital can be at risk)

How to trade leveraged assets?

Are you trading through Olymp Trade and want to know the right way of using leveraged assets? You can follow the below-mentioned steps. 

  • You can start by entering the forex trade modes because the FTT mode does not support leverage. 
  • Choose an asset that you want to trade and fill the desired amount. 
  • Next, click on the multiplier and choose a multiplication rate. 
  • At last, choose the trade direction and open a trade.
olymp trade multiplicator

Trading leveraged assets is quite easy. That means you can open leveraged trades at any time, but you must have enough funds in your account. Additionally, you must remember the reserved security sum as you can’t open a new trade with the security funds

You can always check the multiplier you have used for the selected asset from the “Trades” bar section. 

➥ Sign up with Olymp Trade for free now!

(Risk warning: You capital can be at risk)

Why should you use leverage?

Are you wondering why you must use leverage for trading? Well, you must use leverage because it can increase your profit. If you correctly speculate the market, you would be able to draw large profits. 

Furthermore, using multiplier supplements your funds, which allows you to open more trades with the Olymp Trade platform. Rather than making ten trades of $10, you can multiply the profit using a better multiplier. 

Risk and profit of using multiplier 

While using multiplier sounds interesting, it’s also important to remember that high profits invite higher risks. That means if you choose to do leverage trading, you should be ready to encounter more risks. 

In a usual circumstance, you can expect a more varied financial outcome for a more substantial investment. For instance, a trading volume of $100 is likely to bring 30% profits. That means you will get $130. 

olymp trade leverage settings

However, if you use a leverage of x200 for the same trade, which brings 30% profit, you can expect a payout of $6,000. But if you incorrectly speculate the market, you will lose the same amount. 

While using leverage, remember that the losses will be smaller for a smaller trade volume. Using the right multiplier at the right time can be helpful. You must always apply leverage with caution, considering the potential loss respectively. 

Whether you are a beginner or a professional trader, losing money at an accelerated amount is not good. If you are unsure about the trading, you must never use the leverage. 

➥ Sign up with Olymp Trade for free now!

(Risk warning: You capital can be at risk)

How to change leverage on Olymp Trade?

Once a position is opened, traders cannot change the leverage. Usually, the amount of leverage available is tightly regulated by the authorities.

Conclusion 

Olymp Trade is a reliable binary options broker, allowing traders to use leverage to draw better profitability. Traders can open more positions during the day if the leverage is more. For this reason, short-term traders choose higher leverage assets. 

Official-website-of-Olymp-Trade

As a long-term trader, you must always try to choose smaller amounts of trades with lower leverages. While lower leverage offers less profit, it also reduces the losses. 

➥ Sign up with Olymp Trade for free now!

(Risk warning: You capital can be at risk)

About the author

Marc Van Sittert
Marc Van Sittert is an experienced Binary Options Trader and coach who is originally from South Africa. He started his career in 2014 by trading old-school Binary Options online. His main focus is on short-term contracts with 60-second trades.

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