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02 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.