Deriv trade typesUpdated 3 min readBy the FXNOD team
Multipliers on Deriv: how they work, stop out and costs
A Deriv multiplier magnifies the percentage move of a market on your stake. Profit or loss equals the percentage price change times the multiplier times the stake, less a commission. Your loss is capped at the stake: the position is closed automatically at the stop-out price. The higher the multiplier, the smaller the move that wipes out the stake.
The formula
Deriv gives it as: profit or loss equals the percentage price difference, multiplied by the multiplier, multiplied by the stake, minus commission. With a stake of 100 and a multiplier of 500, a 2% move in your favour is 0.02 times 500 times 100, or 1,000, before commission. The same move against you would be a loss of 1,000, which is why the position is stopped out long before that.
Where stop out falls
| Multiplier | Move against you that loses the whole stake (before commission) |
|---|---|
| x10 | 10% |
| x50 | 2% |
| x100 | 1% |
| x500 | 0.2% |
The move that ends the trade is one divided by the multiplier. On a volatile index, a 0.2% move can happen within seconds. A high multiplier does not increase what you can lose; it shortens the distance to losing it.
The risk controls Deriv describes
| Control | What it does |
|---|---|
| Stop out | Closes the position when the loss reaches the stake. Always on |
| Stop loss | Closes it at a smaller loss you choose |
| Take profit | Closes it when the profit reaches an amount you choose |
| Deal cancellation | For a fee, lets you cancel within a chosen window and get the stake back. Deriv says it cannot be combined with stop loss or take profit, and is offered only on some markets |
Costs
Deriv charges a commission when a multiplier trade is opened, which it says varies by asset class and market volatility. The trade therefore begins slightly negative. Deriv also notes that slippage can make the closing price differ from the level that triggered it.
How it differs from an option
- There is no expiry: the trade stays open until you close it or it is stopped out.
- The profit is not fixed: it grows with the move.
- You can lose part of the stake, not only all or nothing.
In FXNOD
Multipliers are in Trade Pilot, where you can set a take profit and a stop loss on the position, and they are a trade type a Bot Forge bot can buy.
Questions people ask
- Can I lose more than my stake with multipliers?
- Deriv says the stop-out feature limits the risk to the initial stake on every trade.
- What multiplier should a beginner use?
- The lowest available. It leaves the most room before stop out. Practise on a demo account first.
- Are multipliers the same as leverage?
- They magnify price moves in a similar way. The difference is the built-in stop out that caps the loss at the stake.
- Is there a fee for multipliers?
- Yes. Deriv says a commission is charged when the trade is opened, and deal cancellation has its own fee.
Try this contract on demo
Every trade type in these guides is in Trade Pilot, and a bot in Bot Forge can buy it. Read the quoted payout and try it with Deriv's virtual funds.
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