Volatility and synthetic index

Trading Discussion Binary Options
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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.

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

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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

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  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.
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I trade Vix 75 Bro

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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.

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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?

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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.

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

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Hi I really need the information

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I guess if you’re interested in synthetic indices you firstly have to understand what do you want to trade indices at all. Of course there are lots of benefits of trading synthetic indices in comparison with traditional indices. These indices offer tight spreas and high leverage and there is actually no risk to go negative. It’s the style of trading where you don’t need to bother abour losing money at all because this threshold is limited. In addition synthetic indices markets are very flexible, you can choose markets with high or low risks characteristics based on your risk appetite. They’re not affected by the world news and work almost independently.

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I trade Volatility 100(s) on Deriv almost exclusively. This kind of trading is for very short term i.e no longer than 5 minutes trades to be succesful. Trades within this time frame can be fairly predictable but it is not for a novice. You need to be able to read your charts and recognise the often repeated patterns that simulate the real markets. The big advantage is the absence of fundamentals so this kind of trading is perfect for technicals.

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Deriv’s synthetic indices is not affected by real word issues like news, affairs in other countries etc. Due to that you wouldn’t experience sudden spikes or times where there will barge spreads, derives spreads are really low so is their margin and the potential to making huge bucks is really high as long as you know what you’re doing.
The market is way smoother than forex since no synthetic index affects the other one. [Removed for Forums Violation]

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Volatility is a statistical measure of the dispersion of returns for a given security or market index. In most cases, the higher the volatility, the riskier the security. Volatility is often measured as either the standard deviation or variance between returns from that same security or market index. Synthetic index is the purchase of futures contracts and/or options such that one’s exposure and potential payout resemble that of an index. One creates a synthetic index if one believes doing so will result in a higher return than a security tracking a real index. News you can find in google actually, there are plenty of material in the internet.

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I like your introduction I wish to talk with you more and if you have some interested source you can share please

Thank you

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Hello @EnglishForex ,can i learn from you?

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So if it’s true that they mimic real world data volatility , so what about during weekends when the real world markets are closed?

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When the say it “mimics” real markets, don’t look at it by the number of trading days. It just means same principles applies for synthetic trading.

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I wonder how this experiment went? If ordinary forex trading can be so challenging I can just imagine what this synthetic business must be like. After hearing about it from a guy around the road I had tried it in a few demo trades and I was far from impressed. In fact I decided to get away as from it as I could, lol. What I found surprising though was the high level of interest people had in it.

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need a trade partner ?