Price generation
The price feed comes from provider-defined rules or models instead of an underlying cash market.
Education
Understand Synthetic Indices Before You Open a Broker Account
Get the core explanation, see how synthetic indices work, compare them with forex, and choose the broker path that fits how you want to start.
Educational only. Synthetic indices are high-risk products. Some links on this page are affiliate links.
Featured lesson
Step-by-step guide to create a Deriv account
Watch the walkthrough to create your Deriv account, complete the basic setup, and understand what to do before you start trading.
MindX Hub education video
What are synthetic indices?
Synthetic indices are simulated markets built for specific movement styles
They are tradable products offered through broker platforms, but they do not track a single real-world asset like a stock, commodity, or currency pair.
Instead of following the price of something like EUR/USD or gold, synthetic indices are designed around defined market behaviors such as steady volatility, random jumps, or sudden spikes.
That makes them easier to study as product families. It does not make them low-risk. They still require position sizing, loss control, and a clear process.
- Often available 24/7 on supported platforms.
- Not tied to a single real-world asset like EUR/USD or gold.
Visual model
Price behavior model
Example families beginners usually see first when learning synthetic indices.
Volatility
Boom
Crash
Jump
Naming, availability, leverage, and platform access vary by broker and region.
How do synthetic indices work?
They follow provider-defined behavior rules, not a central exchange
The important part for beginners is not the formula itself. It is understanding that synthetic indices are structured products with behavior families, availability rules, and real trading risk.
Behavior families
Different families are designed around different movement styles such as steady volatility, spikes, drops, or jumps.
Continuous access
Many synthetic indices stay open around the clock, so the market structure is not limited to weekday sessions.
Still risky products that can move fast and create real losses on leveraged accounts.
Why trade synthetic indices?
Why some traders prefer synthetic indices
Synthetic indices can feel simpler than forex when you want constant access, less macro noise, and instruments grouped by clearer movement styles.
24/7 access
Useful when you want a market that is available outside standard forex sessions.
Less headline noise
Synthetic indices are not driven by central bank calendars, earnings reports, or geopolitical headlines in the same way forex is.
Defined market styles
You can choose instruments by movement style instead of jumping between many currency pairs.
Choose from a wide range of instruments
Different synthetic families fit different trading styles
The exact lineup varies by broker, but these are the product groups most beginners need to understand first.
Volatility Indices
Continuous movement designed around defined volatility levels. Often used by traders who want a steadier pace.
Boom Indices
Usually associated with upward bias interrupted by sharp bullish spikes.
Crash Indices
Usually associated with downward bias and sudden bearish drops.
Jump Indices
Generally calmer movement interrupted by random jumps that change pace quickly.
Instrument naming, contract rules, leverage, and availability vary by broker and region.
Synthetic indices vs forex
Where synthetic indices can feel simpler than forex
Forex is tied to currencies, macro events, and weekday market sessions. Synthetic indices can be easier to study when you want a more consistent structure and less news dependency.
| Key difference | Synthetic indices | Forex |
|---|---|---|
| Trading hours | Often 24/7 on supported platforms | Mostly weekday sessions |
| Main drivers | Provider-defined price behavior | Macro data, policy, and global flows |
| Reaction to news | Not tied to news calendars in the same way | Often reacts hard to scheduled releases and events |
| Instrument structure | Built around volatility, boom, crash, or jump behavior | Built around currency pairs with different fundamentals |
This does not make synthetic indices safer than forex. It means the market structure is different, so some traders find it easier to focus on one behavior family at a time.
How to trade synthetic indices
Pick a simple process, then start with the broker route that fits
Keep it simple: understand the instrument, then start with the route that fits. If synthetic indices are your main focus, Deriv is the recommended path.
01
Learn the structure first
Understand how the index family behaves, what leverage changes, and where losses can accelerate.
02
Choose your broker path
Compare platform feel, product access, and setup flow before you open the broker route.
03
Start with the right broker route
If synthetic indices are your main focus, Deriv is the clearest starting path. Use the guide first if you still need setup detail.
Broker routes
Deriv is the recommended route for synthetic indices
Choose Deriv if synthetic indices are your main focus. Vantage stays available if you want a broader broker route first.
DerivRecommended
Direct synthetic-first route
Cleaner if synthetic indices are your main focus.
- 1
Create your account through the Deriv partner route.
- 2
Choose the synthetic market path that matches your guide.
Vantage MarketsAlternative
Broader broker route
Better if you want a wider platform environment first.
- 1
Create your account through the Vantage partner route.
- 2
Finish onboarding and confirm the platform path for your region.
MindX Hub is educational only and not a broker. Synthetic indices are high-risk products.