How To Trade Synthetic Indices

Trading Synthetic Indices is the desire of most traders when it comes to trading electronic financial instruments.

Synthetic Indices are special electronic financial assets that mimic real world financial market movement.

Price of Synthetic Indices are not affected by real world market events.

Synthetic Indices are based on a cryptographically secure random number generator (algorithm) that is checked by an independent third party to prevent manipulations.

Price of Synthetic Indices have constant volatility and is free of market and liquidity risks.

 

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Best Way To Trade Synthetic Indices

Follow the steps below when trading Synthetic Indices;

• Know your Account balance/Equity: Small balance (say $5) can only be used to trade certain indices such as Volatility 75 (1s). Minimum $100 is required to trade most indices using the smallest lot size.
• Know the best time to trade the particular index you want to trade on Best Time To Trade Volatility Index 75.
• Check for the market structure: Is price ranging? Trending up? or Trending down?
• Don’t stare too long on the charts. Take a break most of the time. The market is available 24hours/7days/365days a year.
• Regular exercise: Stretch, take a walk, read books during breaks, learn more on how to trade.
• Join a social media trading groups to discuss strategies, market direction and how best to trade synthetic indices.
• Risk Management is key
• Have a Trading Plan and create Trading journal.
• Work on your emotions and learn from your misakes.
• Follow updates from the Broker (Deriv)

Main Reasons Why You Should Trade Synthetic Indices

Trading Synthetic Indices has lots of benefits which includes;

• Tight spreads
• Leveraged trades

However, your risk appetite matters.

Trade types such as CFDs, options, and multipliers are also available.

You will be having additional advantages while trading Synthetic Indices such as:

• You can easily deposit more funds to increase your equity or close your positions in times of margin call.
• Small amount of capital is needed to start trading (as small as $5).
• Fast order execution and deep liquidity is at your disposal, (these is very attractive for all traders, whether small or large).
• Synthetic indices can be traded 24/7, including weekends and holidays.
• Different levels of synthetic indices volatility are available for you to trade on such as:

Volatility 10 Index,

Volatility 25 Index,

Volatility 50 Index,

Volatility 75 Index, and Volatility 100 Index.

For instance, looking at Volatility 10 Index.

Here, the volatility is kept at 10%, which is good for traders that prefer low price swings or fluctuations.

On the other hand, looking at Volatility 100 index which is more higher.

For Volatility 100, the volatility is maintained at 100%, implying that there are more stronger price swings and no significant price gaps. They are continuous indices with deep liquidity.

• Range Break, Jump Index, Boom and Crash Index TRADINGand Step Index are also available for you to trade.

Where to trade synthetic indices?

You get to trade Synthetic Indices on Deriv platforms.

Meta Trader 5 MT5 is the only platform you can trade Synthetic Indices on.

Endless Synthetic Indices Trading Time

You will be able to trade synthetic Indices all day 24/7/365 non stop.

Trading synthetic indices is not affected by fundamental data release, neither is it affected by weekend breaks or holidays unlike Forex.

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Referral links;

(Volatility Index Broker:…https://track.deriv.com/_WxWzztorkVi2vdm9PpHVCmNd7ZgqdRLk/1/)

(Broker: Alpari …   https://alpari.com/en/?partner_id=1244646)

(Broker: Exness … https://www.exness.com/a/t0q1u0q1)

(Broker: FXTM… http://forextime.com/?partner_id=4806145)

(Email: beanfxtrader@gmail.com)

(Telegram:  https://t.me/joinchat/AAAAAE97zaWdZg5KBbrIVQ)