Deriv Synthetic Indices — Complete Guide to 24/7 Trading
A comprehensive guide to Deriv's synthetic indices: Volatility, Crash/Boom, Step, Range Break, and Jump indices. How they work, which ones to trade, strategies, and how to automate with DBot.
What Are Deriv Synthetic Indices?
Synthetic indices are algorithmically generated financial instruments exclusive to Deriv. They simulate real market movements using cryptographically secure random number generators, producing price action that behaves like real financial markets — with trends, reversals, and volatility — but without being tied to any actual underlying asset.
Why Traders Choose Synthetic Indices
Synthetic indices solve several problems that frustrate traders on traditional markets:
24/7 Availability
Markets never close. Trade at 3 AM on Christmas Day if you want. No waiting for market open, no weekend gaps, no holidays.
No External Events
No surprise gaps from news, earnings, or geopolitical events. Price action is purely technical, making chart analysis more reliable.
Consistent Volatility
Each index has a defined volatility level. Volatility 75 always has roughly the same volatility — no calm periods followed by chaos.
Fair & Audited
Deriv's synthetic indices use a cryptographically secure random number generator (CSRNG) audited by independent third parties for fairness.
Multiple Trading Types
Trade synthetics via binary options, multipliers, CFDs, or DBot automation — all on the same index.
Low Entry Barrier
Start with as little as $0.35 per trade on some indices. Great for learning with minimal risk.
Types of Synthetic Indices Explained
Volatility Indices
The most popular synthetic indices. They simulate continuous market movement with a defined volatility percentage. Higher number = more volatile = bigger moves = higher risk and reward.
Gentle price movements. Best for beginners and conservative strategies. Tick every 1 second.
Moderate movement with clearer trends. Good for trend-following strategies. Tick every 1 second.
Balanced volatility. The "Goldilocks" choice for most traders. Enough movement to profit without excessive risk.
The most popular index. Strong trends, clear reversals, and enough volatility for scalping. Tick every 1 second.
Wild price swings. For experienced traders only. Big profits possible but equally big losses. Tick every 1 second.
Maximum volatility synthetic. Price can move 2-3% in seconds. Only for aggressive scalpers with strict risk management.
Our recommendation: Start with Volatility 75 (1s). It has enough movement to trade profitably while being manageable for intermediates. Beginners should start with Volatility 10 or 25 to learn the patterns.
Crash and Boom Indices
These indices have a steady drift in one direction with occasional sharp spikes in the opposite direction. Crash indices drift upward with sudden crashes. Boom indices drift downward with sudden booms.
Averages one crash (sharp drop) every 300 ticks. Gentle upward drift between crashes. Easier to predict crash zones.
Averages one crash every 500 ticks. Longer buildup between crashes. More challenging to time the crash.
Averages one crash every 1000 ticks. Very long buildup. Requires patience. Biggest crashes of the group.
Averages one boom (sharp spike up) every 300 ticks. Gradual downward drift between booms. Most frequent booms.
Averages one boom every 500 ticks. Moderate frequency. Good balance between predictability and reward.
Averages one boom every 1000 ticks. Infrequent but massive spikes. The "patient trader's" index.
Trading tip: On Crash indices, ride the upward drift and exit before the crash. On Boom indices, buy the dip after booms and ride until the next one. Never try to predict the exact tick of a crash/boom — trade the drift instead.
Step Index
The Step Index moves in fixed increments (steps) of 0.1, with an equal probability of going up or down at each step. It's the simplest synthetic index — essentially a random walk with equal probability.
Note: Because of the equal probability, no strategy has a statistical edge on the Step Index. It's useful for testing platform mechanics and understanding binary options without market complexity, but it's essentially a coin flip.
Range Break Indices
Range Break indices trade within a defined range and periodically break out. The breakout direction is random, but the pattern of range-bound movement followed by a breakout is consistent.
Breaks out of range approximately every 100 ticks. More frequent breakouts, smaller moves.
Breaks out every ~200 ticks. Less frequent but potentially larger breakout moves.
Strategy: Trade within the range using support/resistance, or wait for breakouts and trade the momentum. Don't try to predict breakout direction — trade the reaction instead.
Jump Indices
Jump indices have a constant volatility with periodic jumps (price gaps). The jumps average a certain number per hour, adding an element of unpredictability to otherwise steady price action.
Average 3 jumps per hour. Most jumps, hardest to predict.
Average 3 jumps per hour. Medium jump size.
Average 3 jumps per hour. Larger jumps, more reward and risk.
Warning: Jump indices are the hardest synthetics to trade profitably. The random jumps can invalidate any position instantly. Only for experienced traders who understand and accept the additional gap risk.
Strategies for Synthetic Indices
Because synthetic indices are purely technical (no fundamentals), chart-based strategies work particularly well. Here are the most effective approaches:
1. Trend Following on Volatility Indices
Volatility indices form clear trends that can last for hours. Use moving average crossovers (EMA 9/21) to identify trend direction, then enter trades in the direction of the trend. Works best on Volatility 50, 75, and 100.
Setup: When EMA 9 crosses above EMA 21 = uptrend (buy). When EMA 9 crosses below EMA 21 = downtrend (sell). Use 5-minute chart for entries.
2. Drift Trading on Crash/Boom
The key insight is that Crash indices drift upward between crashes, and Boom indices drift downward between booms. Instead of trying to catch the spike, trade with the drift using multipliers or longer-expiry binary options.
Setup: On Crash 300: buy after a crash just occurred (likely safe zone). Set take-profit before the average crash zone. On Boom 300: sell after a boom.
3. RSI Divergence
RSI divergence signals work well on synthetic indices because the price action is technical and responds to overbought/oversold conditions predictably. Look for bearish divergence (price makes higher high, RSI makes lower high) at resistance, and bullish divergence at support.
Setup: Use RSI 14 on 5-minute or 15-minute charts. Wait for divergence at key levels. Enter with 15-30 minute expiry for binary options, or tight stop-loss for multipliers.
4. Support/Resistance on Range Break
Range Break indices are designed for range trading. Identify the current range boundaries, trade bounces within the range, and be ready for the breakout. The range is clearly visible on 1-minute and 5-minute charts.
Setup: Mark the upper and lower boundaries. Trade CALL at support, PUT at resistance. When breakout occurs, trade in breakout direction with confirmation (second candle beyond the range).
Automating with Deriv DBot
One of Deriv's unique advantages is DBot — a visual programming tool that lets you build trading bots without coding. You drag and drop logic blocks to create automated strategies that run 24/7 on synthetic indices.
What You Can Do with DBot
- • Build strategies visually: No coding required — drag and drop blocks for trade logic, conditions, and actions
- • Backtest on historical data: Test your strategy on past price data before going live
- • Run 24/7: Your bot trades synthetic indices continuously while you sleep
- • Set risk controls: Define maximum loss limits, trade sizes, and stop conditions
- • Use pre-built strategies: Start from templates like Martingale, D'Alembert, or simple trend following
DBot Caution
Automated trading amplifies both gains and losses. A bot with a flawed strategy will lose money faster than manual trading because it doesn't hesitate or second-guess. Always backtest thoroughly, start with minimum stakes, and set strict stop-loss limits. Never leave a bot running unmonitored with significant balance.
Which Synthetic Index Should You Trade?
Risks Specific to Synthetic Indices
The fact that synthetic indices never close can lead to overtrading. Set strict trading hours for yourself — just because you CAN trade at 3 AM doesn't mean you SHOULD.
You're trading a number generated by an algorithm, not a real asset. Some traders find this psychologically unsettling. Understand what you're trading.
Synthetic indices only exist on Deriv. If Deriv has downtime, you can't trade or manage open positions elsewhere. There's no alternative exchange.
Deriv can modify the parameters of synthetic indices. While they announce changes, a strategy that worked on the old parameters might not work on the new ones.
Trading synthetics with multipliers (e.g., x100) amplifies gains AND losses. A 1% move against you at x100 multiplier = 100% loss of stake. Use deal cancellation or stop-loss.
Frequently Asked Questions
Are Deriv synthetic indices rigged?
Deriv's synthetic indices use a cryptographically secure random number generator (CSRNG) that is audited by independent third parties. The algorithm is designed to be provably fair. Unlike some OTC brokers, Deriv is regulated and the fairness of their synthetics is verifiable.
Can I withdraw profits from synthetic indices?
Yes, profits from synthetic indices are real money. You can withdraw via bank transfer, e-wallets, or cryptocurrency. Withdrawal processes are the same as for any other Deriv product.
What is the minimum trade on synthetic indices?
Minimum stakes vary by index and trade type. For binary options on synthetics, you can start from $0.35. For multipliers, minimums depend on the multiplier value and index.
Do technical indicators work on synthetic indices?
Yes, and often better than on real markets. Since synthetics are purely technical (no fundamentals), indicators like RSI, Bollinger Bands, and moving averages produce more consistent signals.
Which is better: synthetic indices or OTC?
Synthetic indices (Deriv) are more transparent — audited fairness, regulated broker. OTC (Pocket Option, Olymp Trade) offers more familiar assets like EUR/USD OTC. For weekend trading, we recommend Deriv synthetics for reliability.
Can I trade synthetic indices on mobile?
Yes. Deriv GO is a dedicated mobile app for synthetics. You can also use the Deriv Trader web app on mobile browsers. DBot for automated trading works on desktop browsers.
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Start Trading Synthetic Indices
Open a free Deriv demo account with $10,000 virtual balance. Practice on all synthetic indices — Volatility, Crash/Boom, Step, Range Break, and Jump — with zero risk.
Risk Disclaimer: Trading synthetic indices involves substantial risk of loss and is not suitable for all investors. Synthetic indices are complex instruments and you could lose some or all of your invested capital. Multiplier trading amplifies both potential profits and losses. Automated trading (DBot) carries additional risks including system errors and strategy failures. Only trade with money you can afford to lose. This content is for educational purposes only and does not constitute financial advice. Deriv is regulated by MFSA (Malta) and VFSC (Vanuatu).