In your trading activities, you can use leverage, also known as a multiplier, which is a feature that increases your trade's potential profit and risk.
Here’s an example of how it works:
Let's assume you buy $50 worth of EUR/USD with a multiplier of one. If the price goes up by 10%, your profit will be $5 ($50 x 10%). However, if you use a multiplier of 20 instead of one, your investment amount will rise to $1,000 ($50x20). In this case, your profit has been multiplied by 20.
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. Which is why every car driver chooses a speed that works best for them depending on their experience, road surface conditions and the traffic code.
For newer traders, we recommend using the minimum multiplier of 1 to avoid risks if the market moves against you.