What is the Volatility 75 Index and how do you trade it?

What is the Volatility 75 Index and how do you trade it?

The Volatility 75 Index is a proprietary synthetic instrument created by Deriv that is not available on any exchange. If you’re looking for a broker to trade it, Deriv is the originator and the only platform running the index through its own pricing algorithm. This guide explains what the Volatility 75 Index is, how it differs from the CBOE VIX, what to look for when choosing a broker, and how to access the index through Deriv's platforms.

Key takeaways

▪️ The Volatility 75 Index is a proprietary instrument created by Deriv. It’s not the same as the CBOE VIX and is not traded on any exchange.

▪️ The index maintains a constant volatility rate of 75%, generated by an algorithm that operates independently of financial news, central bank decisions, or geopolitical events.

▪️ Synthetic Indices, including the Volatility 75 Index, trade 24/7, 365 days a year, including weekends and public holidays.

▪️ When choosing a broker, prioritise execution speed, charting tools, and precise risk management controls such as stop-loss and take-profit orders.

▪️ Deriv is the only platform offering direct access to the Volatility 75 Index through its own pricing algorithm, available on both Deriv MT5 and Deriv Trader.

▪️ The Volatility 75 Index is one of a full range of Volatility Indices on Deriv, from V10 to V100, allowing traders to match market pace to their strategy.

What is the Volatility 75 Index and how does it work?

The Volatility 75 Index is a synthetic market generated by an algorithm, not an exchange, that maintains a constant volatility rate of 75%. The algorithm generates price ticks, individual price movements, that collectively reflect a constant volatility rate of 75%. Volatility, in this context, refers to how rapidly and how far the price moves over a given period. A 75% constant rate means the market is deliberately engineered to behave like a highly active asset at all times.

Because it is algorithm-driven, the Volatility 75 Index is unaffected by external events. A surprise interest rate decision, a company earnings report, or a geopolitical development will not change its price behaviour. The index follows only its programmed parameters. This makes it useful for traders who rely on technical analysis, the practice of reading charts and price patterns, because the market's behaviour is consistent and not disrupted by news.

The "75" in the name refers directly to the annualised volatility percentage. Deriv also offers other Volatility Indices at different levels: the Volatility 10 Index, Volatility 25 Index, Volatility 50 Index, and Volatility 100 Index. Each number reflects its programmed volatility rate. The higher the number, the faster and wider the price movements.

How is the Volatility 75 Index different from the CBOE VIX?

The Volatility 75 Index is a proprietary algorithm-driven market, while the CBOE VIX is a real-world index tracking S&P 500 options volatility. It’s important to understand the distinction before opening a trading account.

The CBOE Volatility Index, commonly called the VIX, is a real-world market index published by the Chicago Board Options Exchange. It measures the market's expectation of near-term volatility in the S&P 500, derived from options pricing. It responds to market sentiment, economic data releases, and global events. Traders use it as a gauge of fear or uncertainty in financial markets.

The Volatility 75 Index on Deriv is entirely different. It shares a naming similarity but has no connection to the CBOE or any financial exchange. It does not track the S&P 500, options premiums, or any real-world sentiment metric. Its volatility level is fixed at 75% by algorithm and remains there regardless of what’s happening in global markets.

Feature Volatility 75 Index (Deriv) CBOE VIX
Origin Deriv proprietary algorithm Chicago Board Options Exchange
Based on Programmed price ticks S&P 500 options pricing
Affected by news No Yes
Trading hours 24/7, 365 days Standard exchange hours
Access Deriv platforms only Brokers with VIX futures/options access

If you’re looking for the Deriv Synthetic Indices, the one that runs around the clock, ignores the news, and trades at a constant 75% volatility, that is the instrument covered in this article.

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What should you look for in a Volatility 75 Index broker?

When choosing a Volatility 75 Index broker, you should prioritise high-speed order execution, advanced charting tools, low spreads, and platform reliability to handle constant, rapid price movements.

▪️ Execution speed is the most critical factor. Order execution refers to the time between when you place a trade and when it’s confirmed at your chosen price. In a fast-moving market, a delay of even a fraction of a second can result in slippage, where your trade is filled at a different price than you intended. A broker with robust server infrastructure reduces slippage.

▪️ Charting tools and timeframes are equally important. The Volatility 75 Index doesn’t have opening and closing sessions the way traditional markets do. Price action is continuous, meaning traders need platforms that let them analyse multiple timeframes, from one-minute charts to daily charts, with full access to technical indicators such as moving averages, Relative Strength Index, and Bollinger Bands.

▪️ Spread (the difference between the buy price and the sell price) directly affects the cost of every trade. In a highly active market, a tight spread means less cost to enter and exit positions. Brokers offering the Volatility 75 Index vary in the spreads they apply.

▪️ Platform reliability is non-negotiable for a 24/7 market. A platform that experiences downtime during a position means you cannot act on a price movement or exit a trade. Look for brokers with a strong track record of uptime and transparent reporting of any outages.

What risk management controls do you need for the Volatility 75 Index?

For the Volatility 75 Index, you need risk management controls like stop-loss orders, take-profit orders, margin call alerts, and negative balance protection to limit exposure and prevent excessive losses.

▪️ Stop-loss orders allow you to define the maximum loss you’re willing to accept on a trade. Once the price reaches your stop-loss level, the position closes automatically. This removes the need to watch the screen constantly and prevents a loss from compounding in a fast market.

▪️ Take-profit orders work in the opposite direction: they close your position automatically when the price reaches a profit target you set in advance. In volatile conditions, prices can reverse sharply after reaching a peak. A take-profit order locks in the outcome without requiring you to time the exit manually.

▪️ Margin call alerts notify you when your account balance is approaching the minimum required to keep a position open. This gives you time to add funds or reduce exposure rather than having a position closed without warning.

▪️ Negative balance protection ensures your account cannot go below zero. In extreme price movements, this prevents a loss that exceeds your deposited funds, an important safeguard in high-volatility instruments.

These features manage risk; they do not eliminate it. Trading the Volatility 75 Index requires understanding how each tool works before relying on it in a live position.

A chart illustrating risk management boundaries with a trade entry point, a stop-loss level below the entry to cap losses, and a take-profit level above to lock in profits.

Where can you trade the Volatility 75 Index?

You can trade the Volatility 75 Index exclusively through Deriv’s proprietary platforms, specifically via Deriv MT5 for CFDs or Deriv Trader for options-style contracts. Trading it directly through the originator means accessing the index's own pricing algorithm without any intermediary. Third-party brokers that claim to offer the Volatility 75 Index are typically reselling access to Deriv's data feed.

On Deriv, the Volatility 75 Index is available in two forms:

▪️ Contracts for difference (CFDs) via Deriv MT5, Deriv's implementation of the MetaTrader 5 platform. CFDs let you speculate on the price movement of the index without owning the underlying instrument. You can go long (trade on a price rise) or short (trade on a price fall), and you use leverage, meaning a smaller deposit controls a larger market position. This amplifies both potential gains and potential losses.

▪️ Options-style contracts via Deriv Trader, Deriv's proprietary trading platform. On Deriv Trader, you can trade the Volatility 75 Index using trade types such as Multipliers, which let you increase your exposure to price movements with a defined maximum loss equal to your initial capital.

Both platforms give you access to the same underlying index, but the mechanics of each trade type differ significantly. CFDs on Deriv MT5 suit traders who are familiar with leveraged positions and use stop-loss and take-profit tools actively. Deriv Trader suits traders who prefer defined-risk trade structures.

How does the Volatility 75 Index compare to other Deriv Volatility Indices?

The Volatility 75 Index offers a high 75% volatility rate, sitting in the middle of Deriv's spectrum of indices which range from the slower V10 index to the faster V100 index. Each index reflects a different level of programmed volatility.

Index Volatility rate Suitable for
Volatility 10 Index 10% Traders who prefer slower, steadier price movement
Volatility 25 Index 25% Traders building experience with moderate activity
Volatility 50 Index 50% Intermediate traders comfortable with faster markets
Volatility 75 Index 75% Experienced traders seeking high-activity conditions
Volatility 100 Index 100% Advanced traders seeking the fastest-moving synthetic market

The Volatility 75 Index sits near the upper end of this range. It’s not the fastest index available, but it moves significantly more than the lower tiers. Traders who are new to Synthetic Indices typically start with the Volatility 10 or Volatility 25 Index to understand the market's rhythm before moving to higher volatility levels.

If you’re exploring how the Synthetic Indices range works more broadly, the guide to Synthetic Indices on Deriv covers the full product category, including Step Indices and Crash/Boom Indices alongside the volatility series.

If you want to understand the trade types available on the platform before entering a live position, the introduction to Deriv Trader covers how to navigate the platform and place your first trade. For traders considering the CFD route, our guide to getting started with Deriv MT5 explains account setup and order types in full.

A horizontal scale graphic displaying indices from Volatility 10 to 100, showing a color gradient that intensifies as volatility increases, with the Volatility 75 Index marked as a high-frequency trading asset.

Try the Volatility 75 Index on a free Deriv demo account

Try the Volatility 75 Index on a free demo Deriv account. Open an account and practise trading in constant-volatility conditions without risking real funds. A demo account gives you full access to the same platform, the same index, and the same order types used in a real account, so you can observe how the market moves and test your risk management settings before trading with actual capital.

The information contained on the Deriv Blog is for educational purposes only and is not intended as financial or investment advice. Trading is risky. We recommend you do your own research before making any trading decisions.

Frequently asked questions

No. The CBOE VIX is a real-world index that measures expected volatility in the S&P 500 and responds to market sentiment and economic events. The Volatility 75 Index is a proprietary Synthetic Index created by Deriv. It is generated by an algorithm, trades 24/7, and is not connected to any exchange or real-world financial data.
No. Because the index is driven entirely by a pricing algorithm and is not linked to any economy, company, or commodity, news events, earnings reports, and economic data have no effect on its price. Technical analysis (reading charts, price patterns, and indicators) is the relevant approach.
Deriv created the Volatility 75 Index as a proprietary instrument. It is not listed on any exchange and is not available through any other provider's native pricing. Some third-party brokers may offer access to the data feed, but the index itself originates from Deriv's algorithm.
On Deriv MT5, you trade the index as a CFD using leverage, with stop-loss and take-profit orders to manage your position. On Deriv Trader, you use trade types like Multipliers, where your maximum loss is limited to your initial capital. The underlying index is the same; the trade structure and risk profile differ.
Yes. All Synthetic Indices, including the Volatility 75 Index, trade 24 hours a day, seven days a week, 365 days a year. There are no weekend closures, public holidays, or exchange downtime periods.

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