Best Synthetic Indices to Trade

Synthetic indices have become one of the fastest-growing markets for traders. They are simulated financial instruments designed to behave like real-world assets — but unlike forex or stocks, their movement is driven by algorithms instead of news or central banks.

 With some brokers developing their own synthetic indices instruments and old synthetic indices brokers like Deriv adding some synthetic indices instruments to what they already have, it can be challenging to know the best synthetic indices to trade.

But here’s the thing: not all synthetic indices are the same. Each index comes with its own volatility, risk level, and trading opportunities. Some are slow and steady, perfect for practice, while others are highly volatile and reward thrill-seekers who love fast price swings.

Genarally, the best synthetic indices to trade depends on the type of trader you are and your trading goal. For example the best synthetic to trade for a scalper may not be the same with the one for a swing or a day trader.

In this blog post, we will look at some of the most popular synthetic index instruments and then recommend the best ones to trade for any trading style/strategy.

Types of Synthetic Indices

Before we go to review the best ones to trade, let’s quickly recap the main categories of synthetic indices:

• Volatility Indices (V10, V25, V50, V75, V100): The volatility indices market simulates different levels of market volatility. The numbers (10, 25, 50, 75, 100) represent the relative volatility level according to the broker’s model.  Volatility 10 Index = 10% volatility, Volatility 25 Index = 25% volatility, while Volatility 100 Index = 100% volatility = the highest level of price fluctuation in this category. Deriv is the only Broker that offer all the volatility indices instrument discussed here.

• Crash & Boom Indices: Boom and Crash Indices are synthetic markets that simulate sudden spikes or drops in price. They are designed with a built-in probability of producing a “boom” (sharp upward spike) or a “crash” (sharp downward spike). In boom indices, prices generally trend down, but they produce sudden upward spikes (booms), while on crash indices, prices generally trend up, but they produce sudden downward spikes (crashes). Deriv is the only synthetic indices broker that offers boom and crash indices.

• Step Index: The Step Index is a unique synthetic index that moves in a fixed step size. Unlike volatility or boom/crash indices that swing wildly, the Step Index is designed to behave in a calm, predictable pattern. Deriv is the only synthetic indices broker that offers Step index.

• Jump Indices (Jump 10, 25, 50, 75, 100): Jump indices are synthetic indices designed to mimic sudden, jump-like price movements that you see in highly volatile markets. They’re one of the most unpredictable and exciting instruments for traders who love action. The “jumps” can be sharp upward or downward spikes . These indices come in versions like Jump 10, Jump 25, Jump 50, Jump 75, and Jump 100, with the number reflecting the level of volatility (higher number = more volatility).  Deriv is also the only broker that offers Jump indices as a tradeable synthetic indices instrument.

• Range Break Indices (Range Break 100 & 200): Range Break Indices are synthetic indices designed to simulate markets that move within a fixed price range most of the time but occasionally break out sharply after building enough pressure. They’re excellent for traders who love breakout strategies. The higher the number, the longer it takes before a breakout happens. In Range Break 100, breakouts occur after roughly 100 ticks, while in Range Break 200, breakouts occur after roughly 200 ticks. To trade synthetic indices instrument like range break indices, you need to sign up with Deriv.

• FX Vol Indices: FX Vol Indices are synthetic instruments that simulate the volatility of major forex pairs. These are great for forex traders who want a feel similar to currency trading but in a controlled, news-free environment. They behave like currencies (EUR/USD, GBP/USD, etc.) but without being tied to real-world news or events. Weltrade is the only synthetic indices broker that offers FX Vol Indices.

• SFX Vol Indices: It stands for Synthetic Forex Volatility Indices. Think of them as a training ground for forex trading, without worrying about central bank speeches or unexpected news. They take the FX Vol concept a step further by providing varied volatility models for different forex-like scenarios. Ideal for traders who want to practice with synthetic markets that closely resemble real forex behaviors. Weltrade is the only synthetic indices broker that offers SFX Vol Indices.

• PainX & GainX Indices: These are sentiment-inspired indices that reflect the two sides of trading psychology. PainX  represents market conditions that mimic drawdowns and losses. It’s designed to test your ability to handle “tough market conditions.” GainX, on the other hand, represents conditions with a higher bias toward profitable trends or gains. It’s more forgiving and is often used by traders who like riding strong, favorable moves. Weltrade is the only synthetic indices broker that  offers the PainX and GainX as a tradeable instrument.

Best Synthetic indices to Trade for Beginners

If you’re just starting with synthetic indices, the last thing you want is to dive into overly volatile or unpredictable markets. Beginners need instruments that are slower, steadier, and easier to understand. 

Some of the synthetic indices that beginners can start with include V10, V25, Step Index, Boom/Crash 1000, or GainX. These indices are slower, more predictable, and less stressful. It is perfect for practicing strategies, learning chart reading, and building your trading psychology before moving on to more advanced instruments like V75, V100, or Jump Indices which is very volatile.

Here are the 5 best synthetic indices for beginners:

1. Volatility 10 Index (V10)

• The calmest of the volatility indices.

• Price moves slowly, and this gives you more time to analyze charts and practice without panic.

• Perfect for learning how synthetic indices work, spotting patterns, and testing simple strategies.

• This synthetic indices instrument is offered by Deriv

2. Volatility 25 Index (V25)

• A step up from V10, with moderate volatility.

• Offers a balance between slow-moving and fast-moving markets.

• Easier to trade compared to highly volatile indices but still rewarding enough to keep things interesting.

• This synthetic indices instrument is offered by Deriv.

3. Step Index

• Moves in fixed steps, making it one of the most predictable indices available.

• Doesn’t swing wildly like volatility or jump indices.

• Excellent for practicing entries, exits, and risk management.

• Step index is offered by only Deriv.

4. Boom 1000 & Crash 1000

• Prices generally trend but produce spikes every 1,000 ticks on average.

• More predictable compared to Boom/Crash 500 (which spikes every 500 ticks and is much faster).

• Popular among traders who like to watch for those sudden “boom” or “crash” spikes.

• This instrument is only offered by Deriv.

5. GainX Index (Weltrade)

• Designed with a bias toward profitable trends.

• More forgiving than PainX, making it easier for new traders to stay in profitable conditions.

• Allows beginners to build confidence while learning how trending markets work.

• This is intrument is only only offered by weltrade.

Best Synthetic Indices to trade for Scalpers

The best synthetic indices to trade for Scalper are V75, Boom/Crash 500, Jump 50, Range Break 100, and SFX Vol. These instruments provide the speed, volatility, and frequency of movement needed to capture small, quick profits.

Scalping is all about making quick trades in a short time frame to capture small price movements. To succeed, scalpers need instruments that are fast, volatile, and liquid enough to provide plenty of entry and exit opportunities.

Synthetic indices are perfect for this style of trading because they run 24/7 and provide consistent price movement without being influenced by news events. However, not all indices are ideal for scalping. Some are too slow, while others may be too unpredictable for short-term setups.

Here are the 5 best synthetic indices for scalpers:

1. Volatility 75 Index (V75)

• The king of synthetic indices and the most popular among scalpers.

• Extremely volatile, meaning it produces strong price swings almost every session.

• High risk, but also offers the potential for large profits within minutes.

• This synthetic indices instrument is offered by deriv.

2. Boom 500 & Crash 500

• Spikes occur every 500 ticks on average, making them much faster than the 1000 series.

• Great for short-term traders who want frequent entry points.

• Highly favored by scalpers who focus on catching the “booms” and “crashes” with precise timing.

• These synthetic indices instruments is offered by only deriv.

3. Jump 50 Index

• A mid-range jump index with sudden, explosive price movements.

• Less chaotic than Jump 100 but still provides sharp volatility.

• Excellent for scalpers who want unpredictable yet frequent opportunities.

• This synthetic indices is offered by only Deriv.

4. Range Break 100 Index

• Breaks out of its range roughly every 100 ticks, providing predictable breakout opportunities.

• More frequent breakouts compared to Range Break 200.

• Perfect for scalpers who specialize in breakout strategies.

• This is synthetic indices is offered by only Deriv.

5. SFX Vol Indices (Weltrade)

• Simulate forex-like movements but with different volatility models.

• Designed for traders who want rapid, forex-style price action without real-world news influence.

• Suitable for scalpers who prefer consistency across short time frames.

• This synthetic indices instrument is only offered by weltrade.

Best Synthetic Indices to Trade for Day Traders

The best synthetic indices to trade for day traders are V50, V75, Range Break 100 Index,  Boom/Crash 500, and SFX Vol Indices (Weltrade). These instruments offer frequent price movement, enough liquidity to enter and exit trades quickly, and volatility that creates trading opportunities without being overly chaotic.

Day traders thrive on capturing multiple opportunities within a single trading day. This means they need instruments that offer frequent price movement, enough liquidity to enter and exit trades quickly, and volatility that creates trading opportunities without being overly chaotic.

Synthetic indices provide several instruments that fit perfectly into the day trading style. Unlike scalpers, who rely on ultra-fast price swings, day traders look for a balance between volatility and stability. That is, markets that move enough to provide beneficial setups but not so aggressively that they become unmanageable.

Here are the 5 best synthetic indices for day traders:

1. Volatility 50 Index (V50)

• Offers a balanced level of volatility (not too slow, not too wild).

• Provides clean intraday trends that day traders can ride for hours.

• Great for applying technical analysis like moving averages, breakouts, and support/resistance.

• This synthetic indices instrument is offered by Deriv.

2. Volatility 75 Index (V75)

• One of the most popular synthetic indices among day traders.

• Very liquid with strong intraday movements.

• Rewards traders who can handle sharp swings and apply solid risk management.

• This synthetic indices is offered by Deriv.

3. Range Break 100 Index

• Moves within a defined range most of the time, then breaks out strongly.

• Perfect for breakout and range-trading strategies during the day.

• Works well for traders who like waiting for setups and then striking when volatility expands.

• This synthetic indices instrument is offered by Deriv.

4. Boom 500 & Crash 500

• Prices trend with spikes every 500 ticks on average, which happens more frequently than the Boom/Crash 1000.

• Excellent for day traders who like combining trend-following setups with spike-catching opportunities.

• Good balance between risk and reward within a trading session.

• These synthetic indices instruments is offered by Deriv.

5. SFX Vol Indices (Weltrade)

• Simulates forex-like conditions without real-world news interference.

• Great for day traders who are familiar with currency pairs but prefer a controlled synthetic environment.

• Provides smooth intraday movement that mirrors forex volatility patterns.

Best Synthetic indices to Trade for Swing Traders

Swing traders aim to capture larger price moves that play out over several days or even weeks. Unlike scalpers and day traders who thrive on constant activity, swing traders look for markets that form clear trends, strong breakouts, or steady directional momentum.

Synthetic indices offer some excellent instruments for swing trading. These markets allow traders to hold positions for longer without worrying about sudden news events, since synthetic indices are entirely algorithm-driven.

Here are the 5 best synthetic indices for swing traders:

1. Volatility 75 Index (V75)

• Known for its strong and sustained price trends.

• Perfect for swing traders who like to ride momentum over days instead of minutes.

• Highly liquid with large movements that reward patience and discipline.

• This synthetic indices instrument is offered by Deriv

2. Volatility 100 Index (V100)

• The most volatile of the volatility indices.

• Ideal for traders who can manage risk while holding positions over longer periods.

• Provides explosive price moves that can deliver high returns if managed well.

• This synthetic indices instrument is offered by Deriv.

3. Range Break 200 Index

• Takes longer to build pressure compared to Range Break 100, making it better for swing setups.

• Offers strong breakout moves that can extend over multiple sessions.

• Excellent for traders who like to wait for “big moves” rather than trade constantly.

• This synthetic indices instrument is offered by deriv.

4. Boom 1000 & Crash 1000

• Prices generally trend in one direction while producing predictable spikes every 1,000 ticks.

• Great for swing traders who combine trend-following with spike-catching strategies.

• Less frequent but more reliable setups compared to Boom/Crash 500.

• Deriv is the only broker that offers Boom and crash.

5. PainX Index (Weltrade)

• Simulates tough market conditions with drawdowns, testing patience and strategy.

• Useful for swing traders who want to strengthen their ability to hold trades through fluctuations.

• Provides excellent opportunities for those who can endure temporary losses in pursuit of bigger wins.

What are the most traded synthetic indices?