Why should synthetic indices be in your trading toolbox?

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Why should synthetic indices be in your trading toolbox?

A good trader like a good plumber will have different tools in their toolbox to tackle different jobs. Synthetic indices have a place in your trading as there are many advantages to trading a synthetic index over a currency pair or traditional financial indices such as the FTSE100 or Dow Jones.

These advantages include:

• Synthetic indices on DMT5 offer high leverage and tight spreads.

• You can trade synthetic indices round the clock.

• They’re not affected by world events, real-world market, and liquidity risks.

• Synthetic indices are generated randomly and also audited for fairness by an independent source.

• When trading synthetic indices on DTrader, you’ll know your exact risk at the outset, so no nasty surprises or margin calls.

• There are no negative balances.

• You can start with low trading capital.

• They’re not subject to manipulation or fixing.

• They’re ideal for automated trading with continuous quotes and no gaps.

• You have the ability to choose a range of synthetic markets with lower or higher risk-reward characteristics.

• They’re ideal for technical trading on DMT5 and can be traded using MetaStock

MT5 charting software and chart pattern trading.

• Synthetic indices are ideal for small and large traders alike with deep liquidity and fast order execution at any time of day or night.

• Trading synthetic indices can be regarded as training for understanding real markets, as a first step before graduating to trading more complex instruments like forex and stock indices.

• A stable, regulated, and established online trading service provider offers them.

• New synthetic indices are to be offered as Deriv heavily invests in research and development.