Hints & Tips on Synthetic Indices Trading by Vince Stanzione for Deriv.com

This is a step-by-step guide on how to trade synthetic indices, which are unique to Deriv.

Synthetic indices are unique indices that mimic real-world market volatility and liquidity risks which are often seen in other financial markets. They are available for trading 24/7/365, and are based on a cryptographically secure random number generator audited for fairness by an independent third party. Synthetic indices have been traded for over 10 years with a proven track record for reliability and continue to grow in popularity. Deriv offers a transparent and fair platform with continuous two-way pricing and does not second-guess which side of the trade you are going to take.

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.

• You can trade synthetic indices round the clock.

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

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

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

• You can start with low trading capital.

• There are no negative balances.

• They’re not subject to manipulation or fixing.

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