Forex on Moon.com — the Market, the Multiplier, the Mistake

Currency pairs are the least volatile instruments here by a wide margin. A major pair moving a full percent is a notable day, and much of the time the range is a fraction of that.

Because the raw movement is so small, forex is the class where high multipliers look most reasonable and are most dangerous. The multiplier does not merely amplify the profit; it shrinks the liquidation distance in exact proportion, and on a market this tight the distance can end up smaller than the ordinary noise of a quiet afternoon.

The arithmetic is the same on every asset and it is worth restating here, because it is the thing that transfers between them: a multiplier of n means a move of roughly 1/n against you exhausts the wager. At 10x that is a ten percent move; at 100x, one percent; at 1000x, a tenth of a percent. The leverage page has a calculator that will do it for a specific wager and entry price.

The trap is that the fee does not shrink with the volatility. The opening fee is charged on the leveraged exposure regardless of how little the pair moves, so a low-range market has to travel further, in relative terms, just to cover the cost of having opened at all.

• Check the asset is actually offered today. The list in the product is the live one; anything published elsewhere, including this page, is a snapshot.
• Work out the liquidation distance for your multiplier before you open, not from the panel afterwards.
• Remember the opening fee is charged on the leveraged exposure, not on your stake — see fees.
• Try it on Play Money first. It costs nothing and it is the only way to see how this particular asset behaves at your multiplier without paying for the lesson.