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.
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.
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.
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.
Next, you need to create a dedicated synthetic account to trade boom and crash indices on DMT5.
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.
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> Login to new account.
You will need to enter the following details:
Broker: Deriv Limited
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
Password: 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.
Boom and crash spike due to the numbers generated by an algorithm. The algorithm that runs boom and crash is programmed to periodically produce spikes to simulate a rising (booming) or falling (crashing) market.