What is multiplier?
Multiplier is the ratio between the volumes being traded, i.e., the total investment amount with the multiplier applied and the used margin amount.
What is the maximum multiplier for each asset class?
a. 30:1 for major currency pairs (3.33% margin)
b. 20:1 for minor currency pairs, gold, and major indices (5% margin)
c. 10:1 for commodities other than gold and minor indices (10% margin)
d. 5:1 for individual equities and other reference values (20% margin)
e. 2:1 for cryptocurrencies (50% margin)
How will this affect my trading account with Libertex?
When you trade any asset, the multiplier applied depends on the class the asset belongs to.
With higher multiplier, you need less funds (margin) to open a position, which allows you to open big trades while investing just a fraction.
Conversely, if the multiplier is low, you'll need more of your own funds to open your position.
How do I know the total amount of the trades I can open when my account balance is N?
Maximum Amount = Free Margin * Max Multiplier for the asset class in question.
Let's assume now your account balance is again €10,000, but you want to open multiple trades on EUR/USD.
This is a major currency pair, so the maximum multiplier here is 30:1.
That means your maximum overall trade amount with a multiplier applied is €10,000*30 = €300,000.
In other words, you can open any number of EUR/USD trades you want, but their total value, including the multiplier, must not exceed €300,000.
Let's assume your account balance is again €10,000 and you want to open multiple trades on gold.
For minor currency pairs, gold, and major indices, the maximum multiplier is 20:1.
That means your maximum overall trade amount with a multiplier applied is €10,000*20 = €200,000.
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