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A multiplier is a useful tool for investors

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With every year there are more and more different tools that make it easier for a trader to analyze the market situation and make trading decisions. And what about those who do not trade on Forex and instruct the account manager to do it? Of course, we can fully rely on the trader’s professionalism and luck. And it is possible to take part in increase of efficiency of the means invested in the PAMM account by yourself . And there are tools for that, too. I’ll tell you about one of them today. This is the multiplier on Forex. With its help, the investor can interfere in the trade of the trader to whom he entrusted his funds. If an investor sees a stable-performing trading, then with the help of a multiplier he can increase the risks in order to get a bigger profit. And if it becomes obvious that the situation in trade is unfavorable for the invested funds, the investor can reduce risks. And it does so again using the multiplier.This investment instrument represents the ratio. The value can be in the range of 1 to 5. There’s a step to changing it. However, the value may be less than one: 0.25; 0.50; 0.75. Above unity coefficients are used to increase risks and potential profits. If a trader, on the other hand, wants to reduce risks, then the value of the multiplier should be set less than one.

How to use the forex multiplier

This investor tool may look like this:Say an investor has invested
your money in a PAMM account that’s being traded aggressively. She’s always accompanied
with increased risks. The situation in trade may be such that the investor
there will be serious concerns about negative trading results and
loss of money. In this case, he can also intervene with a multiplier
to reduce the coefficient, and therefore the possible losses.But there may be another
the situation. The investor sees that the manager of the PAMM account is quite successful, but
a very conservative trade. In order to increase the profit, it increases
coefficient.Multiplier for Forex is a very useful tool. With him, every investor will feel more confident. By changing the ratios, it will be able to adjust the risks and returns. But despite the seeming simplicity, the multiplier requires from the investor skills to use it and certain knowledge of the market. It should be understood that this tool, if applied well, can increase the efficiency of investment. However, it cannot guarantee the safety and growth of the invested funds. The probability of their loss is still preserved.Fyodorov’s Inga11.03.2019

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