The Synthetic Index families: Defined behaviours for every strategy

The Synthetic Index families: Defined behaviours for every strategy

Synthetic Indices are distinguished by their engineered volatility, which is generated by a proprietary, cryptographically secure random number engine. This means that every index family maintains a distinct and stable statistical profile, independent of real-world economic news, central bank policies, or geopolitics. This continuity and lack of news risk allow traders to plan strategies around a consistent volatility regime, 24 hours a day, 7 days a week, including weekends and holidays. Understanding these engineered profiles is the critical first step to successful trading.

Key takeaways

- Synthetic Indices are algorithmically generated and trade 24/7, providing stable, news-independent volatility profiles.

- Each index family is engineered for a specific trading style: Volatility for consistent trend following, HFV for high-speed scalping, Crash and Boom for structured event entries, and Step Indices for predictable, mechanical range-bound systems.

- Successful trading hinges on matching your strategy (e.g., scalping or spike trading) to the specific, engineered statistical behaviour of the index you select.

- The full Synthetic Index family is available to practice on a free demo account across Deriv MT5, Deriv cTrader, and Deriv Trader.

Volatility Indices: the benchmark for consistent volatility

Volatility Indices form the core family, providing instruments that target and maintain a constant level of movement. The index number, such as Volatility 10, 75, or 100, directly reflects the aggressiveness of the price action, with higher numbers indicating more movement.

The key feature of this family is the targeted consistency of its volatility profile. For traders, this eliminates the market gaps and volatility clusters that typically accompany scheduled news events in traditional markets. The statistical behavior of the Volatility 75 Index, for instance, remains stable whether you are trading at 3:00 am on a Sunday or 2:00 pm on a Tuesday.

This consistent movement makes Volatility Indices highly versatile. They are ideally suited for strategies that thrive on predictable movements, including trend-following, mean-reversion, and technical breakout systems. The choice of which index to trade depends entirely on the level of movement a strategy requires, with lower-numbered indices being more stable and higher ones offering greater potential price swings.

High Frequency Volatility (HFV) Indices: speed and precision for scalping

The High Frequency Volatility (HFV) Indices share the same fundamental volatility design as the standard Volatility Indices. However, they are engineered with a significantly faster tick frequency, running at two ticks every one second, compared to the standard one tick every two seconds.

This increased data granularity is critical for time-sensitive, high-frequency systems. The HFV family is specifically designed for scalpers and algorithmic systems that require minimal latency and rapid execution. The faster tick cadence allows for more granular data analysis and is perfect for strategies built around short-term price movements where every tick counts. Traders utilising sophisticated automation trading bots often prefer this family for its high signal precision and low-latency modelling capabilities.

Crash and Boom Indices: trading defined spike events

Crash and Boom Indices are markets designed around a specific, statistically defined event: a sharp price spike or drop. - Boom Indices feature consistent small drops punctuated by sharp, defined upward spikes.

- Crash Indices feature consistent small upward movements punctuated by sharp, defined downward drops.

The different variants—50, 150, 300, 500, and 1000—refer to the average frequency of these events. A Boom 1000 Index, for example, features events less frequently than a Boom 50 Index. This design creates a market specifically for spike-trading systems.

Traders using Crash and Boom indices structure their entries and exits around the anticipation of these statistically defined events, which requires a targeted approach compared to the continuous movement of the Volatility family. The newer Crash 50 and Boom 50 indices provide higher-frequency trading opportunities with smaller, more frequent spikes, offering a distinct profile from the larger, less frequent movements of the Crash/Boom 1000 indices.

Step and Multi Step Indices: fixed-increment and range-bound movement

Step Indices and Jump Indices offer the most predictable price action in the Synthetic Indices family. Their movement is governed by fixed, predictable increments, or "steps".

This mechanism creates an environment ideally suited for range-bound systems, where movement is confined within predictable boundaries for long periods. Strategies that rely on defined, mechanical entry and exit points, such as grid trading systems, find these indices to be particularly effective. The fixed increment movement reduces ambiguity about price floor and ceiling levels, supporting strategies that depend on reliable, step-based entries.

Jump Indices: Predictable probability and specialised movement

Jump Indices are characterised by a base of frequent small movements, which are occasionally interrupted by large, rapid jumps in price, potentially in either direction.

This index type is specifically designed for traders who build strategies around the probability of these large jumps. Because of the extreme volatility that defines the jumps, this category typically attracts advanced volatility traders. The focus here is on identifying conditions that predict the next major price jump, making it one of the more specialised instruments in the entire family.

Matching the index to your strategy

The breadth of the Synthetic Index family ensures that there is an instrument tailored to almost any trading style, from high-frequency scalping to long-term trend following.

- If your goal is high-frequency trading or scalping, the High Frequency Volatility (HFV) indices are the best fit due to their accelerated tick cadence.

- If you prefer structured event entries based on price spikes, the Crash and Boom indices allow you to plan around statistically-defined drops or jumps. The choice between C/B 50 and C/B 1000 depends on your preference for spike frequency (higher frequency on C/B 50, lower frequency on C/B 1000).

- For strategies that demand consistent, constant volatility for technical analysis (e.g., trend or breakout strategies), the standard Volatility Indices (10 to 100+) offer the ideal environment, as their price action remains stable regardless of the time of day.

- Finally, if you need the most predictable, mechanical movement for range-bound or grid-based systems, the Step Indices provide fixed increments that facilitate precise planning.

- By objectively comparing the tick frequency, volatility profile, and suited approach of each family, you can target the instrument whose design most closely aligns with your specific methodology and risk appetite.

Synthetic Index families: side-by-side comparison

The dimensions that matter most when choosing between Synthetic Index types, including tick frequency, volatility profile, suited approach, and availability, set out below:

Index family Tick frequency Volatility profile Suited approach Availability
Volatility Indices 1 tick every 2 seconds Constant: 10%, 25%, 50%, 75%, 100%, and higher variants Trend, mean reversion, breakout; strategy depends on which volatility level Deriv MetaTrader 5 (MT5), Deriv cTrader, Deriv Trader
High Frequency Volatility (HFV) Indices 2 ticks every 1 second Same as Volatility Indices Scalping, high-frequency systems, tight execution requirements Deriv MT5 (Standard, Swap-Free, Zero Spread)
Crash and Boom Indices Standard tick frequency Defined spike frequency: 50, 150, 300, 500, 1000 Spike-trading systems, structured event entries Deriv MT5, Deriv cTrader
Step Indices Standard tick frequency Fixed-increment movement Range-bound systems, predictable step-based entries Deriv MT5, Deriv GO (Deriv's mobile trading app)
Jump Indices Standard tick frequency Frequent small moves with occasional jumps Strategies designed around jump probability Deriv MT5, Deriv cTrader, Deriv Trader

Source: Deriv; data compiled from official website and Traders Academy; data as of 28 May 2026.

How can you try the Volatility Indices family on a free Deriv demo?

The fastest way to understand how each Synthetic Index behaves is to trade it on a free demo account. The full family is available across Deriv MT5, Deriv cTrader, and Deriv Trader (Volatility, High Frequency Volatility, Crash and Boom, Step, Multi Step, and Jump Indices) with live specifications mirroring what you would see in a funded account.

Open a demo Deriv account to explore the full Synthetic Indices family across Deriv platforms.

The products offered on our website are complex derivative products that carry a significant risk of potential loss. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. This article is for educational purposes only and does not constitute financial or investment advice.

Frequently asked questions

Synthetic Indices are algorithm-generated instruments with engineered volatility, available for 24/7 trading and unaffected by real-world news. Currency pairs are real-world assets driven by macroeconomic events, available 24/5 following global session-based trading hours.
The number corresponds to the targeted volatility level. Higher numbers, such as 100, mean more aggressive price movement and wider intra-day ranges, while lower numbers indicate a low, steady volatility profile.
HFV Indices share the same volatility framework as standard Volatility Indices but produce ticks at a higher frequency (2 ticks every 1 second). This makes them specifically suited for scalping and high-frequency algorithmic systems where execution timing and tick density are crucial.
Step Indices and Multi Step Indices are best suited for these strategies because they move in fixed increments, providing a predictable step size that is the basis of range-bound and grid-based approaches.
Deriv offers several specialised indices, including Range Break Indices (for timed breakout strategies), Drift Switching Indices (for anticipating predictable shifts in trends), and Trek Indices (for trading short-term action or bigger directional gains.)

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