What Are Synthetic Indices?
Synthetic indices are trading instruments that have been created to reflect or copy the behaviour and movement of real-world financial markets.
In other words, Deriv synthetic indices behave like real-world markets in terms of volatility and liquidity risks but their movement is not caused by an underlying asset.
A Synthetic Index attempts to simulate the behaviour of an entire type of market, just like the way a Stock Index (like The Dow Jones or S&P 500) has a more generalised focus than an individual Stock.
Deriv Synthetic indices are available 24/7, have constant volatility, fixed generation intervals, and they are not affected by real-world events like natural disasters. These are some of the differences between synthetic indices and forex.
Deriv Synthetic indices have been traded for over 10 years with a proven track record for reliability and they are increasing in popularity due to their advantages.
A lot of traders are trading them profitably and making withdrawals.