Important Advantages of trading Synthetic indices 2024
Here are Important Advantages of trading Synthetic indices 2024 with deriv.com for 2024. So this article will tell you why you should trade synthetic indices in 2024
Important Advantages of trading Synthetic indices 2024
Synthetic indices on MT5 offer huge leverage and tiny spreads
Synthetic indices are financial instruments that simulate the behavior of real financial markets. Synthetic indices accounts on MT5 can have a leverage of up to 1:1000. This allows which allows even small trading accounts to have access to trading this assets. With tight spreads as low as 0.09 USD, you can maximize your profits easily. Check the minimum trading requirements for synthetic indices here
You can trade synthetic indices everyday
You can trader synthetic indices everyday of the week without having to worry about market gaps and liquidity risks created by events that takes place while the stock market or the m-=normal markets are closed during weekend. You get to trade synthetic indices 24/7.
Synthetic indices are not moved by global activities
Synthetic indices cannot be moved by global news events, since they are not real markets but simulated. Other markets like the forex market can be moved by the following global events.
The following activities does not affect synthetic indices at all.
- Economic Indicators:
- Central Bank Decisions
- Political News Events
- Geopolitical Events
- Global Health Crises
- Technological Advances
- Energy Prices:
- Global Economic Data:
- Market Sentiment
The above mentioned events can interact in complex ways, and market reactions can be unpredictable.
Synthetic indices are created randomly & also audited by an independently.
These are the fore hard to manipulate unlike the forex and stock markets where big market makers can manipulate the market
Synthetic indices are easy to trade on DTrader
when trading synthetic indices on Dtrader you’ll know your exact risk at the outset, so no crazy surprises and weird margin calls. Dtrader is a simple Free deriv trading platform, it is also very easy to use even if you are a beginner.
There are no negative balances.
You will only lose what you have invested, you are not going to end up having negative balances. Some brokers can get you to a negative balance where you end up owing the broker.
Start trading with small Capital
You actually do not need a lot of money to start trading with Deriv
What is Deriv minimum deposit for 2024?
Deriv minimal deposit requirement is 5 USD, which, at the current exchange rate between the US Dollar and the South African Rand as of the time of writing, is equivalent to 82 Rands . You can open your Deriv trading account HERE or follow our 2024 guide on how to trade synthetic indices.
Synthetic indices cannot be manipulated.
Most of the markets are manipulated by the market makers and big financial institution. Synthetic indices are not easy to manipulate because they are created using complex random number generators. This is a very sophisticated system to manipulate since it is random
They’re ideal for automated trading.
Since these markets can be traded 24/7, it makes them a perfect ideal market for automated trading or what is also known as trading using robots or expert advisors. You can easily run your robot on an uninterrupted server the whole year without worrying about news, gaps and geological effects
Synthetic indices have continuous quotes and no gaps
There are no significant gaps caused by News Announcements, Illiquidity ,Market Sentiment Shifts, Technical Factors, Thin Trading Condition. You will also not experience a “no quote” when trading synthetic indices. This is mainly because the move continuously all year around.
No need to follow the news for trading synthetic indices
Unlike currencies, commodities, and stock indices which can all be affected by world news, such as a tweet from a president, or get manipulated by governments, synthetic indices are purely mathematical. Therefore, there is no need to follow the news or fundamental data.
As a result, the best way forward to trade a synthetic index is by observing price patterns which is commonly referred to as technical analysis or charting.
How to choose the synthetic indices type
There is a range of synthetic indices which you can trade, from lower volatility (Vol 10) to higher volatility (Vol 100). These are continuous indices: they are literally ongoing 24/7/365 with constant deep liquidity, so no large gaps in prices. Daily Reset Indices reset each day at midnight GMT.
These are the Bear Market Index and Bull Market Index. The Volatility 10 Index has volatility set at 10% so the range of price movements
will be lower. At the other end of the spectrum, the Volatility 100 Index is set at 100%, so you will see fairly violent swings in prices which some systems and traders prefer.
The Volatility 100 Index is twice as volatile as the Volatility 50 Index, and four times as volatile as the Volatility 25 Index.
Important Advantages of trading Synthetic indices 2024
Access Deriv Synthetic indices calculator https://synthetic-indices.com/deriv-synthetic-indices-calculator/