Synthetic indicesUpdated 2 min readBy the FXNOD team
Which volatility index is best to trade?
No volatility index is best in the sense of being easier to profit from: each is random and differs only in how far it moves and how often it ticks. Choose by what suits your account and temperament. Lower-numbered indices move less and are calmer to learn on. Higher-numbered and (1s) versions are faster in both directions.
The two things that differ
| Setting | Lower | Higher |
|---|---|---|
| Volatility level (10 to 250) | Smaller moves per tick | Larger moves per tick |
| Tick speed | Every 2 seconds | Every second, on (1s) versions |
Choosing by what you trade
| If you trade | The index changes | Consider |
|---|---|---|
| Digit contracts | Nothing about the odds: last digits are equally likely on any index | Tick speed only. A (1s) index trades twice as often |
| Rise/Fall | Little: direction is close to even on all of them | Tick speed and your patience |
| Touch, Turbos, Accumulators | A great deal: volatility decides how easily a barrier is reached | Test on the exact index you will use |
| Multipliers and CFDs | The distance to stop out or to your stop | A lower index and less leverage |
For beginners
Start on a lower-volatility index with the normal tick speed, on the demo account. Slower ticks give you time to see how a contract settles, and smaller moves make mistakes with barriers and leverage less costly.
For a small account
The index matters less than the product. With options the most a trade can lose is the stake, whichever index it is on, so a small account is protected by a small stake. With leveraged CFDs, a high-volatility index can exhaust a small balance on one position.
For a bot
- A (1s) index roughly doubles the number of trades per hour, so the session reaches its stop loss or target in about half the time.
- Each trade carries a small cost on average. More trades means more cost.
- A bot tested on one index is untested on another.
Claims to ignore
- That one index is more predictable.
- That an index has a pattern at certain hours.
- That a robot or indicator has been tuned to a particular index.
Questions people ask
- Which volatility index is best for beginners?
- A lower-numbered one with the normal two-second tick, on a demo account. It moves less and more slowly.
- Which volatility index moves the most?
- The highest-numbered ones. Deriv says volatility levels run from 10% to 250%.
- Which volatility index is the most profitable?
- None is more profitable on average. They differ in size and speed of movement, not in how predictable they are.
Trade a synthetic index on demo
Pick any index your Deriv account offers in Trade Pilot, or let a bot trade it at a flat stake with a required stop loss. Virtual funds first.
Get started