Smarter trading of synthetic indices
Unlike currencies, commodities, and stock indices which can all be affected by world news events, such as a tweet from a president, or get manipulated by governments and financial institutions, synthetic indices are purely mathematical and are generated using a random algorithm. Therefore, there is no need to check the news or fundamental data.
As a result, the best way forward to trade a synthetic index is by observing price chart patterns which is commonly referred to as technical analysis or charting.
Here is a list of few chart patterns that you can follow HERE
Does NFP news release affect synthetic indices?
No, there's no need to follow the news when trading synthetic indices.
Can synthetic indices be manipulated?
No, synthetic indices cannot be easily manipulated, unlike other financial markets. Synthetic indices are created using random number generator that is independently audited therefore deriv cannot be able to manipulate it .
Manipulation that occurs through various ways, such as inside trading, fake news and other things/ways used to manipulate the markets doesn't affect synthetic indices .synthetic indices mimics the real markets, and it is not real which makes it hard to manipulate.
Independent regulators and auditors make sure that synthetic indices are not manipulated.