What Are Synthetic Indices & How to Trade Them
Everything you need to know about synthetic indices trading: how these markets work, how they differ from traditional forex, and how to get an edge with the Pulse engine.
What Are Synthetic Indices?
Synthetic indices are computer-generated financial instruments that simulate real market movements using a cryptographically secure random number generator. Unlike traditional assets such as forex pairs or stocks, synthetic indices are not tied to any real-world economy, central bank policy, or geopolitical event. This means they trade 24/7, 365 days a year — including weekends and holidays.
The most popular synthetic indices are offered on Deriv and include volatility indices (Volatility 10, Volatility 25, Volatility 50, Volatility 75, Volatility 100), Jump Indices, Boom & Crash Indices, and Step Indices. Each type is engineered to exhibit specific price behaviors, allowing traders to pick the volatility profile that matches their strategy.
Always Open
Trade around the clock. No market closures for holidays or weekends.
Manipulation-Resistant
Prices are generated by audited RNGs, free from broker manipulation.
Fixed Volatility
Know exactly how much noise to expect in each index.
Fast Tick Intervals
Some indices update every second for high-frequency strategies.
Synthetic Indices vs. Traditional Forex
| Feature | Synthetic Indices | Forex |
|---|---|---|
| Market Hours | 24/7/365 | Mon–Fri, session-based |
| Price Driver | RNG algorithm | Economic data, news, banks |
| Gaps | Minimal / predictable | Large weekend gaps common |
| Volatility | Fixed & labeled (e.g. 100 = high) | Variable, event-driven |
| Correlation | None — standalone asset | Correlated with USD, gold, oil |
How to Trade Synthetic Indices
Trading synthetic indices follows the same mechanics as trading any other asset class on a CFD platform: you choose a market, pick a contract type (Rise/Fall, Higher/Lower, Touch/No Touch, Digits, etc.), set your stake, and open the position. The difference is in the strategy and tooling you use.
Pick the Right Volatility Level
Beginners often start with Volatility 10 or 25 because the price moves more smoothly. Higher volatility indices (75, 100) offer bigger swings but require tighter risk management.
Use a Digit Strategy
Synthetic indices update fast enough that the last digit of the price becomes a tradeable signal. Even/Odd, Over/Under, and Match strategies are extremely popular because they react to tick-level patterns.
Set a Strict Risk Limit
Because synthetic indices move continuously, it is easy to overtrade. Decide your maximum daily loss before you start, and stick to it.
Automate with a Bot
Repetitive digit strategies are ideal for automation. A well-built bot can monitor tick patterns, enter trades, and manage stops faster than any human.
How the Pulse Engine Gives You an Edge
The Revolution engine is built specifically for high-frequency synthetic indices trading. It connects directly to the Deriv tick stream and processes every price update in real time — not at candle intervals, but at the tick level.
Live Tick Heatmap
See which last digits are appearing most often in real time. Spot bias before it shows up on a candle chart.
Match Signal Detection
Get alerted when the tick distribution shifts in a statistically significant way.
Sub-Second Execution
The engine evaluates every tick as it arrives, not on a polling loop.
Copy Engine
Mirror high-performing strategies automatically. The copy engine links your account to proven bots without manual intervention.
Frequently Asked Questions
Are synthetic indices safe to trade?
Synthetic indices are just as safe as any other CFD market when traded through a regulated broker. The key difference is that their price is algorithm-driven rather than market-driven, which removes certain risks (like flash crashes caused by news events) but also means you cannot use fundamental analysis.
Can I trade synthetic indices on weekends?
Yes. Synthetic indices trade 24 hours a day, 7 days a week, including weekends and public holidays. This is one of their biggest advantages over forex and stock markets.
What is the best synthetic index for beginners?
Most beginners start with Volatility 10 Index or Volatility 25 Index because the price action is smoother and easier to read. As you gain confidence, you can move up to Volatility 50, 75, or 100 for larger moves.
Do I need a special account to trade synthetic indices?
You need a Deriv real or demo account. Once connected, the Pulse engine can link to your account via OAuth and execute trades automatically or display live signals for manual trading.
Ready to start trading synthetic indices?
Connect your Deriv account to the Pulse engine and explore live tick analysis, bot automation, and copy trading.