Deep DiveUpdated May 2026 • 15 min read

Deriv Synthetic Indices — Complete Guide to 24/7 Trading

A comprehensive guide to Deriv's synthetic indices: Volatility, Crash/Boom, Step, Range Break, and Jump indices. How they work, which ones to trade, strategies, and how to automate with DBot.

What Are Deriv Synthetic Indices?

Synthetic indices are algorithmically generated financial instruments exclusive to Deriv. They simulate real market movements using cryptographically secure random number generators, producing price action that behaves like real financial markets — with trends, reversals, and volatility — but without being tied to any actual underlying asset.

24/7
Never closes
Audited
Third-party verified
20+
Index types
Regulated
MFSA & VFSC

Why Traders Choose Synthetic Indices

Synthetic indices solve several problems that frustrate traders on traditional markets:

24/7 Availability

Markets never close. Trade at 3 AM on Christmas Day if you want. No waiting for market open, no weekend gaps, no holidays.

No External Events

No surprise gaps from news, earnings, or geopolitical events. Price action is purely technical, making chart analysis more reliable.

Consistent Volatility

Each index has a defined volatility level. Volatility 75 always has roughly the same volatility — no calm periods followed by chaos.

Fair & Audited

Deriv's synthetic indices use a cryptographically secure random number generator (CSRNG) audited by independent third parties for fairness.

Multiple Trading Types

Trade synthetics via binary options, multipliers, CFDs, or DBot automation — all on the same index.

Low Entry Barrier

Start with as little as $0.35 per trade on some indices. Great for learning with minimal risk.

Types of Synthetic Indices Explained

Volatility Indices

The most popular synthetic indices. They simulate continuous market movement with a defined volatility percentage. Higher number = more volatile = bigger moves = higher risk and reward.

Volatility 10 (1s)Low Risk

Gentle price movements. Best for beginners and conservative strategies. Tick every 1 second.

Volatility 25 (1s)Low-Medium Risk

Moderate movement with clearer trends. Good for trend-following strategies. Tick every 1 second.

Volatility 50 (1s)Medium Risk

Balanced volatility. The "Goldilocks" choice for most traders. Enough movement to profit without excessive risk.

Volatility 75 (1s)Medium-High Risk

The most popular index. Strong trends, clear reversals, and enough volatility for scalping. Tick every 1 second.

Volatility 100 (1s)High Risk

Wild price swings. For experienced traders only. Big profits possible but equally big losses. Tick every 1 second.

Volatility 150 (1s)Very High Risk

Maximum volatility synthetic. Price can move 2-3% in seconds. Only for aggressive scalpers with strict risk management.

Our recommendation: Start with Volatility 75 (1s). It has enough movement to trade profitably while being manageable for intermediates. Beginners should start with Volatility 10 or 25 to learn the patterns.

Crash and Boom Indices

These indices have a steady drift in one direction with occasional sharp spikes in the opposite direction. Crash indices drift upward with sudden crashes. Boom indices drift downward with sudden booms.

Crash 300Drift Up, Crash Down

Averages one crash (sharp drop) every 300 ticks. Gentle upward drift between crashes. Easier to predict crash zones.

Crash 500Drift Up, Crash Down

Averages one crash every 500 ticks. Longer buildup between crashes. More challenging to time the crash.

Crash 1000Drift Up, Crash Down

Averages one crash every 1000 ticks. Very long buildup. Requires patience. Biggest crashes of the group.

Boom 300Drift Down, Boom Up

Averages one boom (sharp spike up) every 300 ticks. Gradual downward drift between booms. Most frequent booms.

Boom 500Drift Down, Boom Up

Averages one boom every 500 ticks. Moderate frequency. Good balance between predictability and reward.

Boom 1000Drift Down, Boom Up

Averages one boom every 1000 ticks. Infrequent but massive spikes. The "patient trader's" index.

Trading tip: On Crash indices, ride the upward drift and exit before the crash. On Boom indices, buy the dip after booms and ride until the next one. Never try to predict the exact tick of a crash/boom — trade the drift instead.

Step Index

The Step Index moves in fixed increments (steps) of 0.1, with an equal probability of going up or down at each step. It's the simplest synthetic index — essentially a random walk with equal probability.

Step Size
0.1 per tick
Probability
50/50 up or down
Best For
Beginners

Note: Because of the equal probability, no strategy has a statistical edge on the Step Index. It's useful for testing platform mechanics and understanding binary options without market complexity, but it's essentially a coin flip.

Range Break Indices

Range Break indices trade within a defined range and periodically break out. The breakout direction is random, but the pattern of range-bound movement followed by a breakout is consistent.

Range Break 100

Breaks out of range approximately every 100 ticks. More frequent breakouts, smaller moves.

Range Break 200

Breaks out every ~200 ticks. Less frequent but potentially larger breakout moves.

Strategy: Trade within the range using support/resistance, or wait for breakouts and trade the momentum. Don't try to predict breakout direction — trade the reaction instead.

Jump Indices

Jump indices have a constant volatility with periodic jumps (price gaps). The jumps average a certain number per hour, adding an element of unpredictability to otherwise steady price action.

Jump 10

Average 3 jumps per hour. Most jumps, hardest to predict.

Jump 25

Average 3 jumps per hour. Medium jump size.

Jump 50

Average 3 jumps per hour. Larger jumps, more reward and risk.

Warning: Jump indices are the hardest synthetics to trade profitably. The random jumps can invalidate any position instantly. Only for experienced traders who understand and accept the additional gap risk.

Strategies for Synthetic Indices

Because synthetic indices are purely technical (no fundamentals), chart-based strategies work particularly well. Here are the most effective approaches:

1. Trend Following on Volatility Indices

Volatility indices form clear trends that can last for hours. Use moving average crossovers (EMA 9/21) to identify trend direction, then enter trades in the direction of the trend. Works best on Volatility 50, 75, and 100.

Setup: When EMA 9 crosses above EMA 21 = uptrend (buy). When EMA 9 crosses below EMA 21 = downtrend (sell). Use 5-minute chart for entries.

2. Drift Trading on Crash/Boom

The key insight is that Crash indices drift upward between crashes, and Boom indices drift downward between booms. Instead of trying to catch the spike, trade with the drift using multipliers or longer-expiry binary options.

Setup: On Crash 300: buy after a crash just occurred (likely safe zone). Set take-profit before the average crash zone. On Boom 300: sell after a boom.

3. RSI Divergence

RSI divergence signals work well on synthetic indices because the price action is technical and responds to overbought/oversold conditions predictably. Look for bearish divergence (price makes higher high, RSI makes lower high) at resistance, and bullish divergence at support.

Setup: Use RSI 14 on 5-minute or 15-minute charts. Wait for divergence at key levels. Enter with 15-30 minute expiry for binary options, or tight stop-loss for multipliers.

4. Support/Resistance on Range Break

Range Break indices are designed for range trading. Identify the current range boundaries, trade bounces within the range, and be ready for the breakout. The range is clearly visible on 1-minute and 5-minute charts.

Setup: Mark the upper and lower boundaries. Trade CALL at support, PUT at resistance. When breakout occurs, trade in breakout direction with confirmation (second candle beyond the range).

Automating with Deriv DBot

One of Deriv's unique advantages is DBot — a visual programming tool that lets you build trading bots without coding. You drag and drop logic blocks to create automated strategies that run 24/7 on synthetic indices.

What You Can Do with DBot

  • Build strategies visually: No coding required — drag and drop blocks for trade logic, conditions, and actions
  • Backtest on historical data: Test your strategy on past price data before going live
  • Run 24/7: Your bot trades synthetic indices continuously while you sleep
  • Set risk controls: Define maximum loss limits, trade sizes, and stop conditions
  • Use pre-built strategies: Start from templates like Martingale, D'Alembert, or simple trend following

DBot Caution

Automated trading amplifies both gains and losses. A bot with a flawed strategy will lose money faster than manual trading because it doesn't hesitate or second-guess. Always backtest thoroughly, start with minimum stakes, and set strict stop-loss limits. Never leave a bot running unmonitored with significant balance.

Which Synthetic Index Should You Trade?

Trader Level
Recommended Index
Why
Risk
Complete Beginner
Step Index
Simplest to understand, equal probability
Low
Beginner
Volatility 10-25
Gentle movements, forgiving of mistakes
Low
Intermediate
Volatility 75
Clear trends, good for TA, popular
Medium
Experienced
Crash/Boom 300
Predictable drift, spike opportunities
Medium-High
Advanced
Volatility 100-150
Maximum movement, highest profit potential
High
Bot Traders
Range Break 100
Clear range pattern, easy to automate
Medium

Risks Specific to Synthetic Indices

Addictive 24/7 Availability

The fact that synthetic indices never close can lead to overtrading. Set strict trading hours for yourself — just because you CAN trade at 3 AM doesn't mean you SHOULD.

No Real Underlying Asset

You're trading a number generated by an algorithm, not a real asset. Some traders find this psychologically unsettling. Understand what you're trading.

Platform Dependency

Synthetic indices only exist on Deriv. If Deriv has downtime, you can't trade or manage open positions elsewhere. There's no alternative exchange.

Algorithm Changes

Deriv can modify the parameters of synthetic indices. While they announce changes, a strategy that worked on the old parameters might not work on the new ones.

Multiplier Risk

Trading synthetics with multipliers (e.g., x100) amplifies gains AND losses. A 1% move against you at x100 multiplier = 100% loss of stake. Use deal cancellation or stop-loss.

Frequently Asked Questions

Are Deriv synthetic indices rigged?

Deriv's synthetic indices use a cryptographically secure random number generator (CSRNG) that is audited by independent third parties. The algorithm is designed to be provably fair. Unlike some OTC brokers, Deriv is regulated and the fairness of their synthetics is verifiable.

Can I withdraw profits from synthetic indices?

Yes, profits from synthetic indices are real money. You can withdraw via bank transfer, e-wallets, or cryptocurrency. Withdrawal processes are the same as for any other Deriv product.

What is the minimum trade on synthetic indices?

Minimum stakes vary by index and trade type. For binary options on synthetics, you can start from $0.35. For multipliers, minimums depend on the multiplier value and index.

Do technical indicators work on synthetic indices?

Yes, and often better than on real markets. Since synthetics are purely technical (no fundamentals), indicators like RSI, Bollinger Bands, and moving averages produce more consistent signals.

Which is better: synthetic indices or OTC?

Synthetic indices (Deriv) are more transparent — audited fairness, regulated broker. OTC (Pocket Option, Olymp Trade) offers more familiar assets like EUR/USD OTC. For weekend trading, we recommend Deriv synthetics for reliability.

Can I trade synthetic indices on mobile?

Yes. Deriv GO is a dedicated mobile app for synthetics. You can also use the Deriv Trader web app on mobile browsers. DBot for automated trading works on desktop browsers.

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Start Trading Synthetic Indices

Open a free Deriv demo account with $10,000 virtual balance. Practice on all synthetic indices — Volatility, Crash/Boom, Step, Range Break, and Jump — with zero risk.

Risk Disclaimer: Trading synthetic indices involves substantial risk of loss and is not suitable for all investors. Synthetic indices are complex instruments and you could lose some or all of your invested capital. Multiplier trading amplifies both potential profits and losses. Automated trading (DBot) carries additional risks including system errors and strategy failures. Only trade with money you can afford to lose. This content is for educational purposes only and does not constitute financial advice. Deriv is regulated by MFSA (Malta) and VFSC (Vanuatu).

Deriv Synthetic Indices — Complete Guide to 24/7 Trading