Trading multipliers on Volatility Indices: Complete guide

Multipliers on Deriv let you adjust exposure precisely on every trade while keeping your maximum loss capped at your stake. On Synthetic (Volatility) Indices, this gives you leverage-style upside with a simple, transparent loss ceiling and no margin calls or overnight financing.

In 2025, Deriv expanded its multiplier ranges and added clearer in-platform guidance, allowing you to match exposure to current volatility and conviction with less friction. These improvements, along with built-in analytics and educational deep-links, make multiplier trading more accessible for both new and experienced traders.

Quick summary

• What multipliers do: Scale your position’s sensitivity to price moves while capping downside at the stake.
• Why traders use them: No margin calls, no swap fees, linear and predictable P/L.
• What’s new in 2025: Finer multiplier steps, clearer sensitivity prompts, and education deep-links.
• When they shine: 24/7 Synthetic Indices let you tune exposure without news/calendar risk.
• How to start: Align multiplier with volatility; keep stake ≤1–2% of equity; review outcomes by multiplier band.

What are Deriv multipliers and how do they work?

A multiplier is a setting you choose before placing a trade that scales how much your stake gains or loses for each percentage move in the underlying index.

Core formula:

P/L = Stake × Multiplier × % price move

Your loss is hard-capped at the stake because the contract auto-closes when unrealised loss equals your stake. There are no margin calls, no liquidation risk beyond your stake, and no overnight swap charges on multiplier contracts.

This is different from traditional leveraged products such as CFDs, where exposure is borrowed against margin and can result in losses exceeding available funds. Multipliers simplify this by defining the worst-case loss upfront, making them inherently suitable for retail traders focused on transparency and capped risk.

Leanne Smith, Deriv Education Lead, elaborates:

“Multipliers simplify exposure control. You always know your maximum loss before entering the trade, which makes disciplined risk management far easier than with margin products.”

Because sensitivity is linear in the multiplier (double the multiplier → double per-tick impact), your exposure is easier to plan. You can predict profit and loss directly from price movement, supporting consistent risk planning and clear visualisation of outcomes.

How do trading multipliers affect Volatility Indices?

Synthetic (Volatility) Indices are designed to trade 24/7, unaffected by real-world news or macroeconomic data. This means traders can focus purely on technical signals and volatility conditions.

That consistency makes Synthetic Indices ideal for multiplier trading: you can set precise exposure levels without worrying about overnight headlines or liquidity gaps. It also enables weekend testing, strategy iteration, and routine-based trading—activities that are difficult to sustain in traditional markets.

First-principles: sensitivity, tick effects, and the cap

• Per-tick impact (approx): Stake × Multiplier × TickSize.

Example: TickSize 0.01%, Stake USD 10, Multiplier 150× → each tick ≈ USD 0.15 P/L.

• Distance to the cap: the adverse percentage move that would exhaust your stake is about 1 ÷ Multiplier.

Example: at 200×, ≈ 0.50% adverse move hits the cap; at 80×, ≈ 1.25%.

Treat the multiplier as the slope of your payoff line: higher slopes magnify reward potential, while lower slopes provide more “runway” before hitting the stop-out.

Worked mini-scenarios (illustrative numbers)

• Calm probe: Stake USD 8, 60× → per tick ≈ USD 0.048. A ±0.40% move ≈ ±USD 1.92; the worst case is capped at −USD 8.
• Confirmed breakout: Stake USD 12, 200× → per tick ≈ USD 0.24. A +1.2% impulse ≈ +USD 28.80; worst case capped at −USD 12.

These simple, rule-based outcomes make multipliers easier to model, journal, and refine.

Line chart showing profit and loss against price change for 50×, 150×, and 300× multipliers with capped downside

Which multiplier level suits your capped-risk trading style?

Table 1: Multiplier bands by situation

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Edge cases to plan for:

• Volatility clustering: When Average True Range (ATR) rises, step the multiplier down to extend survival time.
• Continuity vs gaps: Synthetic Indices trade continuously, so multiplier stop-outs occur on a smooth price series, not through overnight jumps.
• Financing: Positions are swap-free, allowing you to hold tactical setups longer without incurring interest costs.

What are the best multiplier strategies on Synthetic Indices?

1. Scalping (precision in micro-moves)

Focus on Volatility 25/50/75 with moderate multipliers (50×–120×). Use 1–5 minute charts, RSI or EMA signals, and tight exit criteria.

• Goal: Capture small, frequent moves while keeping drawdowns minimal.
• Why it works: Frequent repetition builds compounding potential, and capped loss allows disciplined iteration.

2. Momentum (after confirmation)

Trade directional continuations on Volatility 75/100 or Crash/Boom indices. Start near 150×, scaling to 250×–300× after confirmation.

• Why it works: Multipliers amplify trend phases linearly, letting you capitalise on clear market structure without excessive capital lock-up.
• Tip: Use smaller stakes for higher multipliers; effective exposure rises quickly above 200×.

According to Amir Rahman, Deriv Product Manager:

“Momentum strategies benefit most from linear payoff instruments. Capped downside gives traders the confidence to stay with a strong move without worrying about margin pressure.”

3. Hedging and offsets

Run opposing trades with different multipliers to stabilise portfolio variance.

• Example: Long Boom, short Crash with smaller counter-exposure.
• Benefit: Smooths account equity and helps maintain exposure balance during volatility bursts.

4. Swing trading (multi-session patterns)

For traders preferring longer holds (1–3 days), focus on Volatility 25/50 or Step Index.

• Use 100×–200× multipliers.
• Swap-free structure makes extended holding cost-efficient.
• Combine with ATR filters to adapt exposure dynamically.

5. Laddered scaling (“test and prove”)

Layer positions sequentially as confirmation builds.

• Open an initial probe at 60×.
• Add a second at 120× after +0.5% favourable move.
• Add a third at 180×–200× after +1.0%.

Each ticket has its own cap, maintaining clear risk isolation.

6. Rule-based and automated trading

Build logic in Deriv Bot or API to adjust multipliers in real time.

• Example logic:

if ATR < 0.3%: multiplier = 150

elif ATR < 0.6%: multiplier = 100

else: multiplier = 60

Automation keeps consistency and reduces emotional decision-making, especially useful in volatile environments.

How can you improve risk management for multipliers?

Position sizing

Follow the 1–2% stake rule per trade. If account equity is USD 1,000, never risk more than USD 10–20 on a single position.

This ensures controlled exposure and smooth equity progression even across a losing streak.

Align exposure with volatility

• If volatility expands, reduce the multiplier; if it contracts, raise moderately.
• Example bands by ATR% (indicative):
  
  • <0.3%: 150×–300×
  • 0.3–0.6%: 100×–200×
  • >0.6%: 50×–100×

Diversify across indices

Each Synthetic Index has a unique volatility fingerprint.

Combine Volatility 50, Volatility 75, and Crash/Boom indices to diversify exposure without overextending margin.

Diversification smooths profit and loss (P/L) swings and creates a more statistically consistent edge.

Routine and behaviour

Trade in set windows (for instance, two 90-minute sessions per day).

Limit the number of setups and use a “three-loss pause rule” — stop trading after three consecutive stake hits.

Keep a trade journal logging index, multiplier, ATR, stake, and result. Over time, patterns emerge showing your most profitable volatility zones. This data defines your personal efficiency zone, the range where you perform best and should focus your trading activity.

Jason Tan, Deriv Quant Analyst, elaborates:

“Traders who journal multiplier performance by volatility regime tend to evolve faster. You can’t optimise what you don’t measure.”

What’s new in 2025

• Expanded multiplier steps across major indices for finer precision.
• In-platform context prompts (e.g., “At 300×, a 0.30% adverse move consumes your stake”).
• Education is deeply linked to Deriv Academy tutorials and product explainers.
• Updated documentation linking volatility families to recommended multiplier bands.

Together, these updates make it easier to learn, test, and apply multipliers dynamically — improving both user experience and trading safety.

Table 2: Multipliers vs CFDs (margin)

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Multipliers give traders the flexibility of leverage without the complexity of margin management or financing costs. CFDs, while powerful, require deeper capital and risk infrastructure, making multipliers the more transparent retail-friendly choice.

How do Deriv platforms support capped-risk trading?

Deriv’s ecosystem ensures that multiplier trading fits seamlessly into both manual and automated workflows.

• Deriv Trader: The primary platform for multipliers, offering real-time cap visibility and interactive sensitivity sliders.
• Deriv GO: Mobile-native parity for monitoring and adjusting exposure, with alerts when volatility conditions shift.
• Deriv Bot: Enables rule-based trading automation. You can define volatility triggers, assign multiplier responses, and record results for review.
• Deriv MT5 (CFDs): Complements multipliers by enabling advanced hedging and cross-asset exposure management in a single portfolio.

All platforms connect through the Deriv Wallet, ensuring unified fund management and seamless trade synchronisation.