How To Trade Synthetic Indices: A Comprehensive Guide For 2021

Synthetic Indices are rising in popularity amongst traders the world over. However, there are still some misconceptions around them and in this post, we will explain what these synthetic indices are and why you may be interested in trading them.

The aim is to help you in understanding synthetic indices.

This a comprehensive guide. You can use the links below to jump to your preferred section. If you are new to forex you can check out this free introduction to forex trading course for beginners.

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12. Frequently Asked Questions on Synthetic Indices

What is the best time to trade synthetic indices?

Synthetic indices have uniform volatility and as such, they can easily be traded at any time. Forex has differing volatility and thus tends to be better to trade generally towards the middle of the week.

Can you trade synthetic/ Volatility indices on MT4?

No, you cannot trade synthetic indices including volatility indices on mt4. This is because Deriv only connects to the more advanced mt5 which they call DMT5. You will not find the required servers on mt4 to connect your account.

How many synthetic indices brokers are there?

Deriv.com is the only broker that has synthetic indices trading. It’s also the only broker that has volatility indices trading.

Conclusive Remarks on Trading Synthetic Indices

Synthetic indices offer a different trading experience that can be profitable. Their increasing popularity the world over is a testament of this.

We would suggest you take your time and practice these markets on a demo account before risking your money.

Volatility Indices from Deriv.com have a maximum leverage of 1:1000 and this can be a double-edged sword. It can prop up and amplify your profits as well as your losses.

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So give us your feedback.

Are you interested in trading synthetic indices from Deriv.com? Do you need further help? Leave your thoughts in the comment box below and we will definitely get back to you. If you are new to forex you can check out this free INTRODUCTION TO FOREX TRADING FOR BEGINNERS COURSE.

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Disclaimer

The products offered on the deriv.com website include binary options, contracts for difference (“CFDs”) and other complex derivatives. Trading binary options may not be suitable for everyone. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on the website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose and never trade with borrowed money. Before trading in the complex products offered, please be sure to understand the risks involved.

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