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.
The movement of synthetic indices is caused by randomly generated numbers from a cryptographically secure computer programme (algorithm).
The random number generator is programmed such that the numbers it gives out will reflect the same up, down and sideways movement that you will see on a forex or stock chart.
The algorithm has a high level of transparency and is audited for fairness by an independent third party.
Deriv is the only broker that offers synthetic indices trading. Deriv is thus the only synthetic indices broker because it ‘created and owns‘ the algorithm that runs these indices.
No other broker can offer these trading instruments because they do not have access to the random number generator. You will have to open an account with Deriv to trade these synthetic indices.
Start by doing Deriv real account registration by clicking any of the the buttons below.
You can get step by step instructions on how to open a synthetic indices account here.
No, Deriv does not manipulate the movement of synthetic and volatility indices. This would be illegal and unfair as they could turn the market against traders.
The algorithm that moves the synthetic indices charts is continually audited for fairness by an independent third party to ensure fairness. The algorithm is so secure that Deriv cannot predict the numbers that it will generate.
Deriv is also a regulated broker. The broker will lose this regulation if they manipulate synthetic indices as they will be acting unfairly.
Deriv also offers other markets like forex, stocks and cryptocurrency and they do not manipulate these either.
Deriv offers five types of synthetic indices that have different movements and characteristics. These are:
These are all examples of Deriv synthetic indices and click on each type to learn more about it.
You can trade these synthetic indices on various platforms on Deriv. These platforms include DMT5 (Deriv MT5 platform), binary options, Smart Trader, DTrader and the D-bot (the Deriv bot that you can tweak according to your preferred trading strategy).
The DTrader be accessed via Deriv.app on a desktop or a mobile device on a browser.
DTrader allows you to manage your trades in any way you prefer. You can trade synthetic indices with options and multipliers on this platform.
Deriv MT5 is an all-in-one CFD trading platform. It gives you access to all trading assets. DMT5 has a wide range of professional trading tools and plugins, including analytical objects, technical indicators, and unlimited charts in numerous time frames, to manage your capital and trading positions better.
The charts and indicators are customisable according to your trading strategy. Trading synthetic indices on Deriv MT5 is only available with a Synthetics account.
You can access DMT5 via a desktop as well as Android and iOS mobile devices. This article will help you set up synthetic indices on mt5.
Deriv X is a CFD trading platform that lets you trade various assets in multiple markets simultaneously. It's fully customisable and packed with features that let you personalise your trading environment.
You can drag and drop the widgets you'd like to use, apply over 90 indicators and 13 drawing tools, and keep track of your progress and historical trades on one screen.
Trading synthetic indices on Deriv X is only available with a Synthetics account. You can access Deriv X via a desktop as well as Android and iOS mobile devices.
DBot is Deriv’s trading platform that lets you build a trading robot to automate your trades.
You don't need coding experience to build your bots. All you need to do is drag, drop, and configure pre-built blocks and indicators onto a canvas to build your bot. You can also select from a variety of pre-built strategies or set up your own.
DBot doesn't require constant monitoring, allowing you to step away from your computer without missing opportunities.
Just set your trading parameters and let the bot do the trading for you. You can trade synthetic indices with options on DBot. DBot can be accessed from a desktop device.
Deriv GO is Deriv’s mobile app that’s optimised for on-the-go trading. With this platform, you can trade synthetic indices with multipliers where you can take advantage of risk management features such as stop loss, take profit, and deal cancellation to better manage your trade.
You can download Deriv GO from Google play store, Apple app store, and Huawei app gallery.
Deriv has just recently launched the exciting copy platform called Deriv cTrader. The platform allows strategy providers to link up with followers and to earn a commisions.
