Volatility Indices on Deriv: Full Guide to Types, Lot Sizes, Volatility Levels & Best Strategies (2025)

When I first started trading synthetic indices back in 2016, volatility indices were a completely new frontier. Fast-forward to today, they’ve become one of the most exciting markets I trade — fast, transparent, and available 24/7.

In this updated 2025 guide, I’ll take you through everything you need to know about Volatility Indices on Deriv:

✅ How they work
✅ Different types of volatility indices
✅ Which ones are most and least volatile
✅ Minimum lot sizes for each index
✅ The best times to trade them
✅ Pros and cons
✅ And links to my tested trading tips & strategies

👉 If you’re a beginner or experienced trader, this guide will help you trade these synthetic markets with more confidence.

What Are Volatility Indices on Deriv?

Volatility Indices are a type of synthetic indices on Deriv.com`. are simulated markets that mimic the behavior of real-world financial instruments — but with one key difference: their volatility is fixed and consistent.

Unlike forex or stocks, volatility indices:

• Trade 24/7, including weekends
• Are not affected by economic news or global events
• Are powered by random number generators that control price movement within defined volatility ranges

👉 Volatility simply refers to how much and how fast a price moves:

• High volatility = fast, sharp price movements (think V75, V100, V300 (1s))
• Low volatility = slower, more stable movements (think V10, V25

Types of Volatility Indices Offered by Deriv

Deriv offers two main types of Volatility Indices: Standard Volatility Indices and 1s Volatility Indices. Each type simulates different levels of market volatility and is categorized by its volatility level and the speed at which it updates.

👉 A tick refers to the smallest price movement of an index — Standard Volatility Indices update once every two seconds, while 1s Volatility Indices update every second, offering faster price action for active traders.

Standard Deriv Volatility Indices

👉 Here’s a full list of the Volatility Indices available on Deriv — starting with the Standard Indices, which update every two seconds and offer a wide range of trading speeds and volatility levels.

Index	Volatility Level
Volatility 10 Index (V10)	Low
Volatility 25 Index (V25)	Moderate
Volatility 50 Index (V50)	High
Volatility 75 Index (V75)	Aggressive
Volatility 100 Index (V100)	Most explosive

1s Volatility Indices (Fast Tick)

👉 For faster-moving markets, Deriv also offers 1s Volatility Indices — these update every second and are ideal for scalpers or traders who want more frequent trading opportunities.

1s Volatility Indices	1s Volatility Indices
Volatility 10 (1s) Index	Volatility 90 (1s) Index
Volatility 15 (1s) Index	Volatility 100 (1s) Index
Volatility 25 (1s) Index	Volatility 150 (1s) Index
Volatility 30 (1s) Index	Volatility 200 (1s) Index
Volatility 50 (1s) Index	Volatility 250 (1s) Index
Volatility 75 (1s) Index	Volatility 300 (1s) Index

👉 Pro tip: 1s indices give you faster price updates and more opportunities — but also more risk if you trade without a plan.

Note: Availability of certain indices may vary based on platform updates and regional restrictions.

👉 Before you can trade Volatility Indices, you’ll need to set up a proper trading account on Deriv. Don’t worry — it’s quick and easy:

📝 How to Open a Volatility Indices Trading Account on Deriv

To trade any of the Volatility Indices listed above, you’ll need to open a Standard MT5 account inside your main Deriv profile. This only takes a few minutes and gives you access to all Volatility Indices 24/7.

✅ Step-by-Step Guide

• Go to the official Deriv SignUp page and create your free account using your email or Google/Facebook login
• Confirm your email, then set up your account details and password
• Once logged in, head to your Trader’s Hub
• Under CFDs, click on the Get button next to Standard Account — this is the account type used for trading Volatility Indices
• Set your MT5 trading password (different from your main Deriv password)
• Your Standard MT5 account will be ready instantly — you’ll also receive your MT5 login ID by email
• You can also open a demo version of the account first to test things out risk-free
• When ready, simply transfer funds from your main Deriv wallet to your Standard MT5 account — and you’re ready to start trading Volatility Indices

🧠 Tip: If this is your first time trading Volatility Indices, I strongly recommend starting with a demo account first — it helps you understand how each index moves and what lot sizes feel comfortable.

👉 Ready to get started? Follow this full step-by-step guide here with screenshots on how to open and set up your account.:
🧾 How to Open a Deriv Volatility Indices Account ➡️

🖥️ Ready to Start Trading Volatility Indices on MT5?

Now that you’ve set up your Deriv account, it’s time to move from setup to actual trading — learning how to place trades, choose the right charts, manage lot sizes, and control your risk.

Whether you’re trading on mobile or desktop, I’ve put together a simple step-by-step walkthrough that shows you exactly how to get started:

• How to log in to your MT5 platform
• How to add Volatility Indices to your chart
• How to place trades and set your stop loss & take profit
• How to monitor, modify, and close trades
• The key differences between desktop and mobile setup

📊 Which Volatility Indices Move the Most (and Least)?

Not all Volatility Indices are created equal. Some move fast with wild spikes (perfect for scalping), while others are calmer and more stable (ideal for safer strategies or beginners building confidence).

If you’ve been wondering:

• Which Volatility Index is the riskiest?
• Which ones are easier to manage with small capital?
• What’s best for scalping vs swing trading?

💡 Understanding the volatility level of each index helps you choose the right strategy, lot size, and even the best time of day to trade.

📏 Choosing the Right Lot Size for Each Volatility Index

Once you know which Volatility Indices are fast-moving and which are more stable, the next key step is understanding how much to risk per trade — and that all starts with choosing the right lot size.

Lot size is everything.

• Trade too big on a fast index like V75 or V300 (1s), and your account can vanish in seconds.
• Trade too small on a slow index, and you’ll struggle to grow consistently.

That’s why I created this practical guide:

👉 Lot Sizes for Volatility Indices: What to Use & Why

Inside, you’ll learn:

• The safest lot sizes for trading V75, Boom 1000, V25 (1s), and more
• How lot size affects your stop loss and drawdown
• Real-world example setups for small accounts ($10–$100)
• My personal formula for balancing aggression vs survival in volatile markets
• You can even download the lot size guide as a pdf

🧠 If you’ve been blowing accounts or can’t figure out why profits vanish fast — this is the section you need to read next.

⭐ What Is the Best Volatility Index to Trade on Deriv?

After trading synthetic indices since 2016, I’ve learned one important truth: there’s no universal “best” index — it depends entirely on where you are in your trading journey.

Some indices are fast and aggressive. Others are calmer and easier to manage. The key is knowing which one matches your skill level and risk appetite.

Here’s a quick breakdown from experience:

If you’re…	Trade This Index	Why
🟢 Just starting out	V10 (1s) or V25 (1s)	Slow & stable
🟡 Intermediate trader	V50 or Boom 1000	Balanced volatility
🔴 Advanced or scalping	V75, V100, V300 (1s)	Fast, high reward/high risk

🧠 Pro Tip: Personally, I love trading V75 for its clean structure and momentum — but I don’t recommend it for new traders unless you have a tested plan and strict risk management.

📌 Key Considerations When Choosing a Volatility Index to Trade

Before you lock in your favorite index, keep these four factors in mind — they’ll save you from blowing your account just because “everyone is trading V75”:

🧠 Risk Tolerance
Higher-volatility indices like V75 and V100 can deliver big gains — but they also move violently. Only trade them if you’re okay with fast losses too.

⚡ Trading Style
If you’re a scalper or day trader, you’ll want fast-moving markets like V300 (1s) or V75 (1s).
If you prefer swing trading or holding longer, V25 or V50 may suit you better.

📈 Market Conditions
Some indices trend cleanly at certain times, while others chop sideways. Always check the chart before diving in — don’t just trade out of habit.

🎓 Experience Level
Beginners should stick to low-volatility indices like V10 (1s) or V25 (1s) until they build confidence and discipline.

When Is the Best Time to Trade Volatility Indices?
One thing many new traders overlook is timing.

While Volatility Indices are available 24/7, that doesn’t mean all hours are equal. Some periods offer clean trends and momentum, while others can be choppy and unpredictable.

If you’ve ever asked yourself:

• Why do some trades work better at certain times of day?
• When does V75 tend to trend cleanly?
• Are there “quiet” hours I should avoid?
• Do 1s Indices behave differently across sessions?

👉 I’ve covered it all in this dedicated guide:

👉 Best Time to Trade Volatility Indices on Deriv

Inside, you’ll learn:

• The best sessions for trading each index
• Why certain times offer better risk/reward
• How to avoid common traps in thin liquidity periods
• Tips for matching your trading style to the right times

🧠 If you want to improve your consistency — simply learning when not to trade can instantly boost your results.

Pros and Cons of Trading Volatility Indices

Trading Volatility Indices can be incredibly rewarding — but only if you understand exactly what you’re getting into.

They offer massive upside, but they also move fast and can punish poor risk management very quickly.

Here’s what I’ve personally experienced since I started trading these markets back in 2016:

💚 Pros (Why I Love Trading Volatility Indices)

⏲️ 24/7 Market Access
No waiting for Monday like in forex. You can trade weekends, late nights, or early mornings — whenever it fits your schedule.

🏦 No News Spikes or Economic Events
Since Volatility Indices are synthetic, they’re not influenced by political news or surprise economic releases (NFP, interest rates, etc.).

⚡ High Volatility = High Opportunity
If you’re disciplined, you can grow small accounts fast — especially on indices like V75 and V300 (1s).

📊 Clean Technical Structure
Volatility Indices tend to respect support/resistance and price action better than many choppy forex pairs.

📈 Perfect for Strategy Testing
Because these markets move 24/7, you can test strategies, refine setups, and get instant feedback without waiting for market open/close cycles.

⚠️ Cons (What to Watch Out For)

💀 Aggressive Movement Can Blow Accounts
If you use oversized lot sizes without a proper stop loss, fast indices like V75 and V100 can wipe you out in minutes.

🎏 Psychological Pressure
The sheer speed of price movements can trigger panic, overtrading, or premature exits — especially for newer traders.

😵 Unique Behavior
Every index has its own personality and rhythm. What works perfectly on V10 might fail miserably on V300 (1s).

♎ Lot Size Confusion
Unlike forex where 0.01 is standard, each synthetic index uses different point values and lot size behaviors — this trips up many beginners.
👉 Learn more here: Lot Sizes for Synthetic Indices

🧠 Bottom Line:
Volatility Indices are ideal for traders who want action, structure, and flexibility — but only if you respect the risks and approach it like a real business.

👉 Want a deeper dive with real examples and long-term tips?
Check out this guide: Advantages and Disadvantages of Trading Synthetic Indices

🧾 Share Your Experience

Over the years, I’ve seen traders — myself included — take very different journeys when it comes to trading Volatility Indices.

Some started with V25 (1s) because it felt safer…
Others jumped straight into V75, got burned, and had to step back to learn proper risk management.
A few mastered V100 or Boom 1000 and stuck with them because they matched their trading style perfectly.

Personally, I started with V10, then gradually moved to V75 — and while I still trade it today, I’ve learned to scale back and switch between indices depending on market conditions and account size.

There’s no single “best” Volatility Index — only the one that fits your personality, risk tolerance, and patience.

👉 Now I’d love to hear from you:

• What was the first synthetic index you traded?
• Which one are you trading now?
• Did you blow an account before figuring it out?
• Which index do you trust the most — and why?

💬 Drop your experience in the comments below — your story could help another trader avoid costly mistakes.

Let’s build a community of smart, disciplined traders who learn and grow together.

👉 And if you found this guide helpful, be sure to bookmark it — or check out the Related Resources above to keep sharpening your edge with Volatility Indices.

FAQs on Volatility Indices (2025 Edition)