What Are Synthetic Indices?
The Market That Never Sleeps

Stocks close. Forex slows on weekends. Synthetic Indices run 24 hours a day, 7 days a week, 365 days a year — and they're changing how people learn to trade.

So, What Exactly Are They?

Synthetic Indices are simulated financial markets created by Deriv using a cryptographically secure random number generator. They're independently audited to ensure fairness and transparency — meaning no one can manipulate them, not even Deriv.

They mimic real market behavior — trends, breakouts, consolidation, volatility spikes — but they're completely unaffected by real-world events. No central bank announcements. No earnings surprises. No geopolitical shocks.

💡
Why does this matter?

In traditional markets, a surprise news event can wipe a perfectly set-up trade in milliseconds. With Synthetic Indices, price moves on structure alone — making it far more learnable for beginners.

The Volatility Index Family

The most popular Synthetic Indices are the Volatility Indices — commonly called VIX. Each one has a different volatility level, measured as the percentage of price movement per second.

VIX 10

Low volatility · Slower moves

Best for tight risk management and learning position sizing.

VIX 25

Moderate volatility

A good middle ground — clear structure with reasonable movement.

VIX 50

Moderate-high volatility

Popular with intermediate traders. Strong trends and patterns.

VIX 75 ⭐

High volatility · Most traded

The most popular index. Big moves, clean structure, high reward potential.

VIX 100

Very high volatility

Fast and aggressive. Best suited for experienced traders.

Synthetic Indices vs Traditional Markets

FeatureSynthetic IndicesForex / Stocks
Trading Hours24/7 — never closesLimited hours, weekends off
Affected by newsNo — pure price actionYes — unpredictable spikes
Minimum depositFrom $5 on DerivOften $100–$500+
Demo account$10,000 virtual fundsVaries by broker
Chart structureClean, consistent patternsCan be erratic
Weekend tradingAvailableNot available

Why Beginners Love Synthetic Indices

The learning curve in trading is brutal — but Synthetic Indices flatten it significantly. Here's why:

⚠️
They're still real risk

Don't let "simulated" fool you. The profits and losses on Synthetic Indices are completely real. Treat them with the same discipline as any other market.

Start Exploring Synthetic Indices — Risk Free

Open a free Deriv demo account and explore all the Volatility Indices with $10,000 in virtual funds.

Open Free Demo Account →

Continue learning with the UrAvgTrader Beginners Guide →

Open Demo Account