Deriv trade typesUpdated 3 min readBy the FXNOD team
Rise/Fall on Deriv: how it works and what it pays
Rise/Fall is the simplest Deriv option. You predict whether the market price will finish above or below the entry price when the contract ends. If you are right you receive the payout quoted before you bought; if you are wrong you lose the stake. With two roughly equal outcomes, you need to win a little more than half your trades to break even.
How a Rise/Fall contract settles
| Term | Meaning |
|---|---|
| Entry spot | The first tick after Deriv's servers process the contract |
| Exit spot | The latest tick at or before the end time |
| Rise | Wins if the exit spot is above the entry spot |
| Fall | Wins if the exit spot is below the entry spot |
| Duration | A number of ticks, or a length of time |
What happens between entry and exit does not matter. The price can move against you for the whole contract and still finish on your side, or the reverse. If the exit spot equals the entry spot, the result depends on the contract's own rule, shown on the order form.
The arithmetic
On a random index, Rise and Fall are close to equally likely. The payout is less than double the stake, and that difference is the cost of the contract. If a stake of 10 returns 19.50 on a win, the profit is 9.50 and the break-even win rate is 10 divided by 19.50, or 51.3%. Whatever the quoted payout, divide the stake by the total return to get the win rate you must beat.
| Total return on a stake of 10 | Profit if you win | Win rate to break even |
|---|---|---|
| 19.80 | 9.80 | 50.5% |
| 19.50 | 9.50 | 51.3% |
| 19.00 | 9.00 | 52.6% |
| 18.00 | 8.00 | 55.6% |
Choosing a duration
- Tick durations settle in seconds. They suit automation and give no time to think.
- Longer durations give the price more room to move and make each trade a slower decision.
- On a random index no duration is more predictable than another. The duration changes the pace, not the odds.
In FXNOD
Rise/Fall is available in Trade Pilot, where the order panel shows the payout Deriv quotes before you buy. In Bot Forge it is one of the trade types a bot can buy, and two of the templates use it: one follows the last tick and one applies Martingale.
Questions people ask
- What is the difference between Rise/Fall and Higher/Lower?
- Rise/Fall compares the exit spot with the entry spot. Higher/Lower compares it with a target price you choose.
- Is Rise/Fall a 50/50 trade?
- The two outcomes are close to equally likely on a random index, but the payout is less than double the stake, so the trade is slightly against you on average.
- Can I close a Rise/Fall trade early?
- Where Deriv offers a sell price for the open contract, yes. Very short tick contracts simply run to the end.
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.
Get started