- Analyst AZA
This market instrument is directly linked to PAMM accounts: the main task of the multiplier is to add flexibility and improve risk management.
Using the multiplier Forex allows you to distribute risks: before its introduction, all the main risks fell on the manager's shoulders, and now, with the help of a multiplier, the investor chooses and sets the necessary levels, independently choosing risk and profit.
For any stock trader who aspires to become successful, it is very important to carry out two main tasks:
- conclude profitable operations
The main goal of trading is gaining profit, so making profitable trades is the number one task for each trader.
- it is important to be able to calculate the amount of leverage that is used when opening a deal.
Task number two will be a component of the risk management system.
Using all his knowledge, experience and being responsible, the stock trader enters the transaction with his funds, which means that he must necessarily take into account the main goals - income generation and risk management.
If he manages investor funds, the situation changes and a logical question arises, should he adhere to the rules of risk management or is it an investor's task?
In order not to overload the shoulders of the manager of the player, in the foreign exchange market, the PAMM accounts must provide the player with the opportunity to independently indicate the percentage of the invested funds, the amount that he is ready and may risk after a trade operation.
Risks must be flexible: they can both be increased or minimized, but of course, the final results and the future profit of the trader depend on this.
It is in such situations that the Forex multiplier is used: it is not only the discovery of new opportunities but also a responsible step towards improving trading and giving it flexible terms and expanding its functionality.
But of course, the application of the multiplier is not just an adjustment of the settings or input parameters of the risk system, it is a change in the PAMM principle of the service: changing its operation, its functionality.
As a rule, the bulk of PAMM sites take as a basis a cumulative principle: investor funds gather in the accounts of managers, and this is an obstacle to normal operation, managing players can not concentrate on work, distracted by finance.
In reality, the introduction of the multiplier is not an easy task for PAMM sites.
The multiplier is a certain parameter that is actively used by the trader for the risk method, before investing in the PAMM account and other player tools.
This factor helps to calculate such a parameter: the number of times that the investment changes relative to the price.
As for the basic principle of action, the multiplier works as follows:
1) stock market players use a tool to modify the trading of managers.
If the risk-to-profit ratio does not suit you, you can, for example, increase the level of profitability, when investing in a trader, or vice versa, apply risk minimization.
2) forex multiplier allows you to increase the efficiency of the use of finance, the means that the depositor owns and disposes of.
Use of funds is equivalent to a parameter - an amount that is more than, the size of your account, several times (up to 5 investments in the manager), and up to 1000 times if it is investments in metals or currency instruments.
3) the multiplier, which is used for investing in foreign exchange instruments, has certain values, in the range from 1 to 200, and the step is equal to one.
For investments in PAMM traders, the values can be: 0.25, 0.5, 0.75, 1, 1.5, 2,3,4,5.
For the manager it is advantageous to use such a tool: the investor will be satisfied, and the manager's capital grows, attracting even more customers. And it's all about the right approach and the flexibility of the customized process, which is achieved when using the forex multiplier.
This is an indispensable component: you can personally choose and establish the risks, profitability, adjust the system. For the manager it is an excellent opportunity to raise the reputation, rating and, of course, increase the capital.
Using all his knowledge, experience and being responsible, the stock trader enters the transaction with his funds, which means that he must necessarily take into account the main goals - income generation and risk management