Comprehensive Guide To Step Index Trading (2022)
- Learn how to trade the step index from Deriv which are popular worldwide
- Get to know the best step index brokers
- Learn about profitable strategies that you can use in step index trading
The Step Index simulates a market step by step. It has an equal probability of going up or down with a fixed step of 0.1. It is a type of synthetic index.
The movement of the step index is caused by randomly generated numbers from a cryptographically secure computer programme (algorithm).
The algorithm is owned by Deriv.
Lot sizes determine the trade size you can place. The step index has a minimum lot size of 0.1.
To trade the step index in DMT5 you need to open a synthetic indices account in Deriv. Below are the steps that you follow to open the 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.
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 the step index 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.
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.
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
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 you can start trading.
No, you can't. You can only trade the step index on DMT5. Deriv, the only broker with the step index, only uses MT5 servers.
Funding your trading account with at least $10 will allow you to place trades..
There is no set minimum deposit amount needed to trade the step index. You can transfer as little as $1 from your main account to your DMT5 synthetic indices account.
However, the challenge with such a low deposit is that you will not be able to place trades due to margin and minimum lot size requirements.
The step index has uniform volatility around the clock. This means that you can trade them at any time of the day. This is different from forex where there are some periods with low volatility.
You just have to be on the lookout for the best setups.