Comprehensive Guide To Boom & Crash Indices Trading (2024)

  • Learn how to trade boom & crash indices from Deriv which are popular worldwide
  • Get to know the best boom & crash indices brokers
  • Learn about profitable strategies that you can use in boom & crash indices trading
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How to trade boom & crash indices

Boom and crash indices are synthetic indices from Deriv that are programmed to reflect rising and falling real-world monetary markets.

In other words, they behave specifically like a rising (booming) or falling (crashing) financial market.

What Are The Different Types Of Boom & Crash Indices Offered By Deriv?

There are six types of boom and crash indices namely:

  • Boom 300 Index
  • Boom 500 Index
  • Boom 1000 Index
  • Crash 300 index
  • Crash 500 Index
  • Crash 1000 Index

The Boom & Crash 300 indices have, on average, 1 spike in the price series every 300 ticks.

The Boom 500 index has, on average, 1 spike in the price series every 500 ticks while the Boom 1000 index has on average 1 spike in the price series every 1000 ticks.

Similarly, the Crash 500 Index has on average 1 drop in the price series every 500 ticks, while the Crash 1000 Index has an average of one drop in the price series every 1000 ticks.

The difference between boom and crash is that the boom indices have spikes going up while the crash indices have spikes going down.




Which Brokers Offer Boom & Crash Indices?

Deriv is the only broker that offers boom & crash indices because it owns the algorithm that moves these indices. No other broker has access to the algorithm.

In other words, Deriv is the only

  • Boom 1000 index broker
  • Boom 500 index broker
  • Crash 1000 index broker
  • Crash 500 index broker
  • Boom 300 index broker
  • Crash 300 index broker

Boom & Crash Indices Minimum Lot Sizes

Lot sizes determine the trade size you can place. Below are the minimum crash boom indices lot sizes.

Boom 1000 Index 0.2
Crash1000 Index 0.2
Boom 500 Index 0.2
Crash 500 Index 0.2

Boom & Crash Indices Minimum Deposit & Margin Requirements

You can deposit as little as $1 to your synthetic indices account. However, you will not be able to tradecrash boom indices with such a low account balance.

The margin requirements and the minimum lot sizes needed to trade boom and crash will not allow you to place trades with such a low balance.

Below are the margin requirements and the minimum account deposit needed to trade the different boom and crash indices.

Boom & Crash Index Margin requirements for 0.2 lot size Minimum advisable account balance required
Boom 1000 Index $6.01 $10
Boom 500 Index $2.51 $5
Crash 1000 index $3.53 $5
Crash 500 Index $3.72 $5

How do you calculate boom and crash indices lot sizes?

Calculating the lot sizes in boom and crash indices trading can be a bit tricky. This is because each boom and crash index has its own different lot size as opposed to forex where all pairs use the same lot size with the minimum being 0.01.

MT5 works with a system called points which is the smallest value that an instrument can change by. This changes from symbol to symbol depending on the accuracy of the price.
If, for example, the price has 3 digits after the comma (e.g. 1014.76) then 1 point = 0.001. So then, 500 points on this symbol would equal 0.005. Examples of boom and crash indices with three digits after the comma include the  Boom 1000 index, Boom 500 index and crash 500 index.
If a symbol has 4 digits after the comma (e.g. 1.1213) then 1 point = 0.0001. So then, 500 points on this symbol would equal 0.0050. This applies to Crash 1000 index.
Using the understanding above you can calculate pips without a boom and crash lot size calculator.

How Do You Trade Boom & Crash Indices On DMT5?

To trade boom and crash indices in DMT5 you need to open a synthetic indices account in Deriv. Below are the steps that you follow to open the account.

1. Open Your Deriv Main Account

Start by opening your main Deriv account. This account will allow you to trade various markets like binary options, forex, and synthetic indices. You can open the Deriv main account here.

open Deriv account

Enter your email in the box provided and click on “Create Demo Account“.

Deriv will send you an email to verify your email address. Open that email and click on the link to verify your email address and finish setting up your account. If you do not see the email try checking your spam folder.

Choose your preferred password & country of residence.

2. Open A Deriv Real Account

After verifying your email address, you will have a demo account on Deriv with $10 000 in virtual funds.

The next step is to do Deriv Real Account registration.

Deriv real account registration

Log into the demo account that you created in the first step. Click the dropdown arrow beside the $10 000 demo balance and click on the ‘Real’ tab.

Next, click on the Add button and choose the default account currency. You will use this default currency to deposit, trade & withdraw and you can't change it after your first deposit. It is important to make sure you choose a currency that is convinient for you.

You will need to supply some details to finalise your Deriv real account registration. Enter the following details such as your real name, address & phone number.

Ensure that you use details that you can later verify. This is because as part of its Know Your Customer (KYC) policy, Deriv will ask you to upload your proof of residence and ID or passport.

These documents should have the same details as the ones you supplied during the registration.

3. Open A DMT5 Synthetic Indices Trading Account 

Next, you need to create a dedicated synthetic account to trade boom and crash indices on DMT5.

Deriv DMT5 account

Click on the ‘Real’ tab and then click on the Add button next to the synthetic account. Next, set the password for the synthetic indices account. It’s not the main account password, you will only use it to access the synthetic indices trading account.

After creating the account you will now see the account listed with your login ID. You will also get an email with your login ID that you will use to log in to the mt5 synthetic indices account.

4. Download the DMT5 Platform

Next you need to download the DMT5 platform.

To do this you must click on the synthetic account as shown below.

Downlaod DMT5 platform

You will then be taken to a page with links to Metatrader 5 application for various systems like Android, Windows, iOS etc at the bottom of the page.

Download the one you want to use.

5. Login To The DMT5 Platform

After downloading and installing your DMT5 you will then need to login to your trading account.

Click on Settings> Log in to new account.

You will need to enter the following details:

Broker: Deriv Limited
Server: Deriv-Server
Account ID:
These are the numbers that you see next to your Synthetic indices account. You will also get this login id in the email that you get after opening the account
Enter the password that you chose when you opened the synthetic account in step 3 above

Make sure you type these correctly because if you make mistakes you will not be able to connect to your trading account.

After logging in and transferring funds you can start trading.

You can use this profitable strategy to trade crash and boom indices.

Frequently Asked Questions On Trading Boom & Crash Indices

Can I trade boom & crash indices on MT4?

No, you can't. You can only trade boom and crash indices on DMT5. Deriv, the only broker with volatility indices, only uses MT5 servers.

Which brokers have boom and crash?

Only Deriv has boom and crash indices because it created the algorithm that runs them.

What are crash and boom indices on Deriv?

Crash and boom indices on Deriv are synthetic indices that simulate the performance of markets that experience significant volatility. These indices are generated using a random number generator, and they are designed to provide traders with the opportunity to speculate on the direction of future price movements.

What are the different types of crash and boom indices offered by Deriv?

Deriv offers a variety of crash and boom indices, including:
Crash/Boom 1000: This index experiences a crash or boom every 1000 ticks on average.
Crash/Boom 500: This index experiences a crash or boom every 500 ticks on average.
Step indices: These indices have an equal probability of up or down movement in price series with a fixed step size of 0.1.

How do I trade crash and boom indices on Deriv?

To trade crash and boom indices on Deriv, you will need to create a trading account and deposit funds. Once you have done so, you can open a trade by selecting the crash and boom index you want to trade, specifying the amount you want to trade, and choosing whether you want to buy or sell.

What are the risks of trading crash and boom indices on Deriv?

Crash and boom indices are highly volatile, and there is a significant risk of loss when trading them. It is important to understand the risks involved before you start trading and to use risk management tools such as stop-loss orders to limit your losses.

What are the benefits of trading crash and boom indices on Deriv?

Trading crash and boom indices on Deriv offers several benefits, including 24/7 trading, low minimum trade sizes, and the ability to trade on both rising and falling markets.

Can I use leverage when trading crash and boom indices on Deriv?

Yes, Deriv offers leverage on crash and boom indices, which allows you to trade with a smaller amount of capital. However, leverage also increases the risk of losses, so it is important to use it wisely.

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