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.
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There are four types of Synthetic Indices available on Metatrader 5 (MT5) trading platform.
These are examples of synthetic indices:
- Volatility Indices
- Crash & Boom Indices
- The Step Index and
- Range Break Indices.
Synthetic indices can also be further divided into two broad types i.e, daily reset indices and continuous indices.
Continuous Indicies on Deriv.com
Continuous Indices on Deriv.com move non-stop. They are ongoing 24/7/365.
Daily Reset Indices on Deriv.com
Daily Reset Indices are slightly different, they replicate markets with a bullish and bearish trend respectively with constant volatility. There are only two daily reset indices; The Bull Market and Bear Market indices which reset (or restart) at 0:00 GMT daily.