Broker to Trading

Deriv offers Multipliers on its user friendly DTrader online trading platform for a range of markets including Forex, Cryptos and Synthetic Indices. Multipliers allow the trader to multiply the percentage change in value of a market by a stake and by a Multiplier chosen by the trader. The Multiplier can be less than 100%, equal to 100% or more than 100%.

Deriv is the rebranding of the well known broker Binary.com. Deriv began as a trading platform available on the Binary.com website. The aim was to include a range of Binary.com's platforms in an intuitive layout. However Binary.com itself rebranded to Deriv and Binary.com has moved to Deriv.

One of the unique platforms available on Deriv was and is DTrader. DTrader is arguably the most user friendly of the platforms on Deriv. Traders who want to trade Multipliers including on Cryptos with a user friendly platform may wish to try Deriv DTrader. Deriv Sign-Up

What are Multipliers ?

Multipliers are a type of trade where the trader speculates on the direction of a trade and either makes or loses money based on the outcome of the trade. They are called Multipliers because the amount which is won or lost is based on a multiplication of the change in value of the market traded by the stake by a percentage factor chosen by the trader (the Multiplier).

Multipliers are not time limited, but by amplifying the effect of a move in the market, they can effectively limit the time the trader can stay in the trade, if the market moves against them. However the loss is limited to the stake size which is also chosen by the trader. When the loss equals the stake, the trade ends. So the trader cannot lose more than they invested.

The trader chooses a Multiplier which can have ranges which vary depending on the market, with an overall range from x10 to x1000. The parameters of the trade are set on the right hand tab on DTrader.

What is the stake ?

The stake is part of the Multiplier. So if the trader choses a larger stake, they can win or lose more. It is set by the trader and and also limits the loss which can be made by the trader. Stakes begin from $1 and go up to $2000, depending on the market. Deriv Sign-Up

How is the profit or loss of the trade calculated ?

So the trader has set the stake and the Multiplier. They then need to choose a direction for the trade, from Up or Down (two buttons on the trade parameter selection tab). When the trade begins, the value of the market will typically change. From analysis or some other method, the trader will have chosen a direction they think it will move in (the trader can choose Up if they they think it will move Up or Down if they think it will move down). The trader can also set a Take Profit and Stop Loss. Take Profit help the trader lock in gains and the Stop Loss can help limit the loss of the trade.

As the market moves on the chart, it changes in value. For each 1 percentage rise or fall the trader either wins or loses this percentage times the stake times the value of the multiplier. So if a stake of $100 was chosen, for example and a multiplier of x15 and a direction of Up, if the market moves up by 1%, the trader gains 1% of $100 x 15 = $15. If the market goes down by 1%, then the trader loses by this amount. So the amount either lost or won is the percentage change in the market's value times the stake times the Multiplier. If the trader chooses a smaller Multiplier they can reduce the effect of a move against the traded position. The trader cannot control the percentage change in the market, but with a Multiplier they can magnify (or amplify) the effect of this change to a greater or lesser extent.

There is no upward limit on the amount which can be gained, however markets tend to limit this themselves, as they can move in retracements opposite to the direction of the trade. A retracement could trigger a stop loss or total loss of the stake, even if the market continues in the traded direction. As noted, losses continue until the stake value is reached, or a stop loss. It is possible to have a safety net for the trade by using Deal Cancellation, T&Cs apply.

What is Deal Cancellation ?

This is a feature available on DTrader which lets the the trader cancel their trade within a time frame specified by the trader, for some markets, returning the stake amount to the trader. Time frames range from 5 minutes to 60 minutes. If the trader sets a stop loss, then Deal Cancellation is triggered if the trade reaches this level as long as it is activated for the trade. There is a charge to use this based on the size of the stake and the duration of the time frame. Deriv Sign-Up

Is there a commission charge for the trade ?

There is a commission charge for each trade which is based on the stake size and the Multiplier.

What tools are available to analyse markets ?

One approach is to use technical indicators to attempt to gauge direction in the market, although indicators like all tools can give the wrong outcome. DTrader has a 20+ indicators available, including MACD, RSI, Ichimoku Cloud and more exotic items such as the Rainbow Moving Average. Clicking on the information icon by the indicator gives a description of it. The trader can also use drawing tools (for example to define trends lines), choose from Area, Candle, Hollow and OHLC chart price types and set time frames from tick to 1 day (which can be used for multiple time frame analysis, where the trade attempts to hone in on potential support and resistance).

Support and resistance

In a Multiplier trader, whether a market can continue moving in a given direction is potentially significant, as the trade is based on amplifying gains (or if it goes in the dirrection opposite to the trader, losses). Support and resistance are used to try and guage whether a market might continue moving in a given direction or may stall or even reverse.

A support level is one where the market stopped moving down in the past and a resistance level is one where the market stopped moving up in the past, based on its representation on the chart. Multiple time frame analysis can show where these levels happened across time frames. Support and resistance is past support and resistance and thus looking for a value level at which is occurred does not mean it will happen again.

Can the trader trade Synthetic Indices ?

Synthetic Indices are available to trade Multipliers. These are not real markets but are based on an algorithm and let the trader specify types of market conditions. These can be traded 24/7. The Synthetic Indices available for Multipliers are Volatility Indices, which let the trader set different levels of volatility, Crash/Boom Indices which spike down (Crash) or up (Boom) on average every 500 or 1000 ticks, the Step Index which has an equal probability of rising or falling with steps of 0.1 and the Jump Indices which come in Jump 10, 25, 50, 75 and 100 types. Each Jump Index jumps 3 times per hour with different level of volatility. More volatile Indices have lower Multiplier ranges.

Can the trader trade Cryptos on Multiplers ?

Cryptos are availabe to trade Multipliers. As they are extremely volatile, lower multiples are offered. BTC/USD (Bitcoin) and ETH/USD (Ethereum) are available.

What is the minimum deposit to use DTrader ?

The minimum deposit is $5 and varies depending on the payment method used (for some it is $10 or higher). Deriv allows a wide range of methods, however which payment method is available depends on where the trader is located (payment methods offered can be found from the Cashier tab on the Deriv platform). Deriv also allows accounts denominated in cryptos including Bitcoin (as well as a fiat currency) and supports cryptocurrency account funding. Account are offered denominated in Bitcoin, Ethereum, Litecoin, both Tether Omni and Tether ERC-20 and in USD Coin. The trader can deposit to a cryptocurrency denominated account using fiat with Changelly. However crypto funding is not available in all regions.

Deriv GO Mobile App

Deriv has a mobile app dedicated to trading Multipliers, called Deriv Go.

Why trade Multipliers at Deriv ?

The trader can choose from different types of markets including Synthetic Indices, Forex and Cryptos and can amplify the effect of the change in value of a market. If they wish to provide a safety net they can purchase Deal Cancellation. DTrader is arguably particularly user friendly and allows the trader to switch from a real to a virtual account. Since Deriv is a suite of platforms, the trader can switch to SmartTrader (which has a wide range of trade types to trade), DBot, which lets the trader create bots, MT5 which allows margin trading and automated trading with Expert Advisors (EAs) and user friendly Deriv X, which supports margin trading as well. On the virtual account, the trader can practice trading and test out Multipliers without risking real money. Deriv allows the trader to trade with small trade sizes on the real account and has a very low minimum deposit, so the trader can trade with smaller sums as well as larger. The minimum stake is $1 and the maximum stake is $2000.