About Volatity Indices Trading

MT5 has a range of tools for analysing market including technical indicators. Technical indicators were designed for real markets however they can be used to analyse Synthetic markets. As with any market, analytical tool do not predict, but may provide a basis for making a trade. The Indices form patterns as well, providing another basis for analysing these market. The trader can use chart price types such as candlestick charts if they wish, and thus use the wide range of analysis techniques based on these, such as candlestick chart analysis. MT5 in fact has an expanded range of tools compared with the basic MT4, including more inbuilt technical indicators, graphical objects and time frames.

They are similar to trading any market, in that the trader is trading on movements on a chart on a trading platform and can use trading tools to analyse these markets. One difference is that the trader may select characteristics of these markets such as volatility, or simulate Booming or Crashing markets, which is not possible with real markets. However, these are simulated, not real markets and characteristics of real markets may be different or absent from these Indices.

It depends on the Synthetic Index. Most are fixed; however, the Crash Boom Indices have floating (variable) spreads.

These vary depending on the Index. The minimum trade size is 0.005 lots which is offered for the Volatility 75 Index. Other Indices offer higher minimum trade sizes.

The maximum leverage is 1000:1, meaning the trader can trade with smaller account sizes if they wish, especially given the minimum trade size available. Increasing leverage increases risk but the trader can reduce their exposure by lowering the order size.

The Volatility, Crash Boom Indices, Step Index and Range Indices can be traded continuously, 24/7.

While the trader can create a Real account, they may also create Demo accounts. These can used to test out the Indices and try out ideas and strategies, without risking real money.

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