# Risk Multiplier by Balance

When utilizing the risk multiplier by balance feature, Ectype's trade copier calculates a proportional lot size for each copied trade based on the balance of both the Copy from and Send To accounts. This dynamic approach ensures a balanced and risk-sensitive trading experience.

**How it Works.**

Let's break down the process:

1. **Balance Proportion:**

   * The copier considers the balance of the **Copy from** and **Send To** accounts to calculate a proportional lot size for each trade.
   * For example, with a multiplier of 1, if the Copy From account has a balance of 10,000 and the Send To account is 5,000, the Send To lot size will be half of the Copy From lot size.<br>

   Formula:

   ```rust
   (Send To Balance / Copy From Balance) * Copy From Lot Size​
   ```
2. **Multiplier Adjustment:**

   * The multiplier value allows further adjustment of the lot size.
   * A multiplier of 2 will double the Send To lot size, while a multiplier of 1 will halve it.<br>

   Formula:

   ```rust
   (Send To Balance / Copy From Balance) * Copy From Lot Size * Multiplier
   ```

   <br>

**Example Scenario**

Let's illustrate this with a practical example:

* Copy From Account Balance: $10,000
* Send To Account Balance: $5,000
* Copy From Lot Size: 1 (standard lot)

With a multiplier of 1, the Send To lot size would be calculated as follows:

```scss
(5,000 / 10,000) * 1 * 1 = 0.5
```

The Send To lot size in this case would be 0.5, representing half the lot size of the Copy From account.​**Tips:**

* Maintain a consistent risk management strategy by adjusting the multiplier accordingly.
* Understand the impact of the multiplier on the proportional lot size and tailor it to match your risk tolerance.