Deriv trade typesUpdated 3 min readBy the FXNOD team
Accumulators on Deriv: growth rate, range and risk
An accumulator option grows your stake by a fixed percentage on every tick that the price stays within a narrow range around the previous tick. If the price moves outside the range, the contract ends and the stake is lost. You choose a growth rate from 1% to 5%, and you can sell at any time to take the profit so far.
How it works
Choose a growth rate
Deriv offers 1% to 5%. It is fixed when you open the contract.
The range is set around each tick
A higher growth rate comes with a narrower range, so the contract is more likely to be knocked out.
Each tick inside the range grows the payout
The growth compounds: at 5% the value is multiplied by 1.05 every tick.
You sell, or it ends
Sell to take the profit, set a take profit to do it automatically, or lose the stake if the price leaves the range.
What compounding looks like
| Ticks survived | Value of a stake of 10 at 1% | Value of a stake of 10 at 5% |
|---|---|---|
| 5 | 10.51 | 12.76 |
| 10 | 11.05 | 16.29 |
| 20 | 12.20 | 26.53 |
| 50 | 16.45 | 114.67 |
The right-hand column is why accumulators are attractive, and why they are dangerous. Reaching fifty ticks at 5% means the price stayed inside a very narrow range fifty times in a row. Deriv also caps the number of ticks and the payout of a contract.
The one inequality that matters
Call the chance of surviving one tick s and the growth rate g. Holding for one more tick is worth it on average only if s multiplied by 1 plus g is greater than 1. At 5% growth, s must be above 95.2%. At 1%, above 99.0%. The range for each growth rate is set by Deriv, so the survival chance is theirs to decide, and the pricing includes a margin in Deriv's favour. No number of ticks turns that into an advantage.
Practical rules
- Decide the take profit before you open, and let it close the trade.
- Treat every stake as an amount you expect to lose sometimes in full.
- A higher growth rate is a faster trade in both directions, not a better one.
- Greed is the specific risk here: the profit on screen grows every tick until it is zero.
In FXNOD
Accumulators are in Trade Pilot, where you can set a take profit, and Bot Forge has a template that takes a small profit early on each contract.
Questions people ask
- What growth rates can I choose for an accumulator?
- Deriv offers growth rates from 1% to 5%, fixed when the contract opens.
- What is the most I can lose on an accumulator?
- The stake. Deriv says that if the price moves outside the range, the trade closes and the loss is limited to the initial stake.
- Which growth rate is best?
- None on average. Higher rates grow faster and are knocked out more often.
- Can I close an accumulator early?
- Yes. Selling credits the stake and the profit so far, and a take profit level does it automatically.
Try this contract on demo
Every trade type in these guides is in Trade Pilot, and a bot in Bot Forge can buy it. Read the quoted payout and try it with Deriv's virtual funds.
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