Volatility and synthetic index

I will appreciate if you give me ideas regarding these:

  1. What is volatility and synthetic index that are offered by binary. Com

  2. where can I get news regarding them

Regards.

4 Likes

i also in need of it…
if we both can share similar interest
do you trade volatility75

2 Likes

I was really hoping to get answers on these too.

I heard that it’s an automation that measures the movement of currency prices per the volatility in the number of places

  1. Synthetic indices are simulated trading instruments that mimic or reflect the behaviour of real financial markets. These real financial markets include forex, stocks and commodities

What moves synthetic indices?

Synthetic indices move through the use of randomly generated numbers.

The random numbers are generated by a cryptographically secure computer programme & for transparency issues, the broker is unable to influence or predict which numbers will be generated. To ensure this, the random number generator is audited for fairness by an independent third party.

This is just like in the real-world markets where the broker has no influence on the price movements.

**What Are Volatility Indices On Deriv?

Volatility Indices on Deriv are a type of synthetic indices which are simulated markets that mimic the real world market volatility. The broker offers various volatility indices namely;

  • Volatility 10 Index (V10 Index)
  • Volatility 25 Index (V25 Index)
  • Volatility 50 Index (V50 Index)
  • Volatility 75 Index (V75 Index) This is the most popular volatility index
  • Volatility 100 Index (V100 Index)

These numbers indicate volatility of the index relative to the real-world market volatility. Market volatility is measured on a scale from 1 to 100 with 100 being maximum volatility.

Thus, the Volatility 100 Index represents 100% market volatility and the Volatility 10 Index has only 10% of the real-world market volatility. In other words, the Volatility 10 Index has just 10% of the volatility of the V100 Index.

Volatility 50 has 50% of the volatility of the V100 Index and so on.

These indices update at the rate of one tick every two seconds. A tick is the minimum price movement of an index.

Other Synthetic Indices Include:

  • Crash & Boom Indices
  • The Step Index and
  • Range Break Indices.
  1. Since they are simulated markets they are not affected by any fundamentals i.e you can’t get any news releases around them. They have the same volatility 24/7/365 because of this.
5 Likes

I trade Vix 75 Bro

1 Like

It’s cool that you’re interested in it, because it’s very right to be interested in even the smallest details to have the most accurate idea of the market and learn to make informed decisions that will bring you good money.

Per chance do you have information on the pip per value, and how to calculate the pips for the synthetic indicies offered on binary,com , now Deriv?

1 Like

This information can be found on any website.
And the volatility you observe every day is the very process of price formation, or rather its dynamics.

can you please give me a hint on how you count pips so as to apply risk management ? pls

Hi I really need the information