How the Parlay Strategy Works on Deriv
A parlay reinvests your winnings: the stake for the next trade is the last stake plus the profit it made.
How Parlay works
After a win, you stake the whole return, your stake plus its profit, on the next trade. A loss, or reaching the end of the set number of legs, sends you back to the base stake.
Because each leg risks everything from the last one, the chance of completing a long parlay falls with every leg.
The rules
- Start at one unit.
- Win: stake the last stake plus its profit on the next trade.
- Loss, or after the last leg: back to one unit.
A worked example
| Trade | Result | Stake (USD) |
|---|---|---|
| Trade 1 | Win | 10.00 |
| Trade 2 | Win | 18.00 |
| Trade 3 | Win | 32.40 |
| Trade 4 | Loss | 10.00 |
| Trade 5 | Win | 10.00 |
| Trade 6 | Win | 18.00 |
Three-leg parlay with a 10 USD unit and an illustrative 80% payout. The 80% payout is illustrative, not a Deriv figure. Actual payouts vary by contract.
Risks to understand
All or nothing
One loss ends the parlay and removes every leg's winnings from play.
Chances compound down
Winning several trades in a row is much less likely than winning one.
No edge
Compounding changes how much you win or lose, not how likely it is.
Using Parlay in AI Binary Bots
Choose it from the Progression Strategies dropdown in the Trading Panel, then turn on risk management to add a stop loss and take profit. Practice on a Deriv demo account first and review drawdown and largest loss in Trade analytics. No staking plan creates an edge: progressions only reshape how much you stake, not whether a trade wins.
Test Parlay on a Deriv demo account before you risk real money.
Get StartedFrequently asked questions
- What is a parlay in trading stakes?
- A plan that reinvests the stake and profit from each win into the next trade.
- How is Parlay different from Paroli?
- Paroli doubles the stake after each win. Parlay stakes the exact return, which depends on the payout of the contract.
Keep reading
- ParoliParoli is a reverse Martingale: it doubles your stake after a win and drops back to the base stake after a loss.
- 1-3-2-61-3-2-6 is a fixed four-step plan for winning streaks: stake 1, 3, 2 and 6 units on consecutive wins, then start over.
- All strategy guidesCompare every staking strategy in one place.
Risk warning: Trading binary options involves a high level of risk and you could lose your entire stake. Only trade with money you can afford to lose. This page is educational and is not financial advice.