What are Volatility Indices?
Synthetic Indices are markets that are simulated. They behave like real monetary market but their behaviour is created from the use of randomly generated numbers. Binary.com’s Volatility Indices are proprietary synthetic volatility indices which emulate real-world market volatility. These indices are based on “a cryptographically secure random number generator audited for fairness by an independent third party.” For transparency issues, broker is unable to have an effect on or predict which numbers will be generated and hence is unable to cheat the market.
Synthetic Indices are a broader class of simulated markets and contain Volatility Indices. There are four types of Synthetic Indices available on MT5 which are Volatility Indices, Crash Boom Indices, Step Index and the Range Indices.
Volatility Indices as the name says vary in their volatility. Even though we trade a portfolio of more than 5 indices, Volatility Index 75 is an example of the most volatile indices whilst Volatility Index 10 is an example of the least volatile indices. There is also a class of Volatility Indices on the broker we use and these are classified as HF (High Frequency) Indices. The main difference between the HF and the ordinary indices is that the HF indices are 4 times faster. Understanding this can give us the advantage we want in the markets. However, because of their volatility, we can make more pips faster when we are on the right side of the market and the opposite is also true when caught on the wrong side of the market.
Trading Platform Available for Trading Synthetic Indices?
Synthetic Indices are offered on MetaTrader 5 and on other platforms, however MT5 has a dedicated Synthetic Indices account, the Synthetic account. This account and the platform are available from the MetaTrader tab, under the Trade tab on the left or from the Accounts tab on the right. Some countries may have restrictions on trading Synthetic Indices on MT5, however Volatility Indices may still be traded on SmartTrader. Binary.com has a new platform available called Deriv which includes MT5.
Signing Up for a Synthetic Indices Account
Creating an account is fairly easy on the Binary website. Make use of this link and create a Synthetic Indices account to get started. Trading starts soon after account opening and verification is only required after reaching the $10 000 withdrawal limit.
If you want assistance on how to open an account or how to verify an account you can always chat with the admin for assistance.
Volatility Indices vs Stocks, Commodities and Currencies
Unaffected by economic events. Stocks, forex and cryptocurrencies are affected by the news which may result in some losses if one is not aware of current affairs. VIX is not affected by the news at all and we trade based on technical analysis only.
Market is always open. We trade VIX 24/7 whether it’s a public holiday or it’s a weekend. This allows a trader to trade anytime they want and still get time to do other things.
Flexible deposit and withdrawal methods. Various methods are available for deposits and withdrawals on Binary. Withdrawals are processed within 24 hours and depending on your time of request and withdrawal method funds may reflect same day in your account.
Volatile market. This is a double-edged sword but it works well for us. You do not have to wit log for trade to get into profit (or loss!). VIX moves fast and ca grow your account faster than forex trading and stocks trading
Capital Requirements
Good capital is always recommended. You can literally start with a deposit of $5 depending on the deposit method. However, this amount is too low to grow and to make reasonable profits thus we recommend larger deposit if you are joining our services.
Deposits and Withdrawals
Binary accepts a wide range of payment methods. These include Skrill, Neteller, Perfect Money, Bitcoin, FasaPay etc.
Withdrawals are processed between 3 am to 11 am (Central African Time) and are processed within 24 hours. If you request a withdrawal within their working hours, the withdrawal will reflect same day if using a payment method such as Skrill.
How Our Services Make Trading Easier
We offer a wide the following services to make life easy for traders at all levels.: signals, strategy and mentorship
Signals. Our signals service is basically us telling you when to buy or sell a certain index. We advise on how long to hold the trade, profit to expect and when to exit in case our prediction is incorrect. We are not 100% but most of our trades always win and win bigger than the losses! That’s what keeps us in the game. If you are interested in our signals service you can order here.
Strategy and mentorship. Here we teach traders at all levels how to analyze the market and trade like professionals. This is meant for those who want to be able to trade independently even without any signals service. If you are interested in learning to trade you can enroll now.
Software. We have developed an indicator that aids in analysis. Combining this with the strategy makes trading a lot easier. Our tool box includes a way to (1) trade the trending markets and (2) trade the reversals. So, you can always trade the market in both directions by catching the fast moves beforehand. Currently we do not offer the software alone but it comes with the Lifetime Package.
Summary
Synthetic Indices offer a way to trade simulated markets which are available to trade 24/7. The trader may trade Volatility Indices, a sub set of Synthetic Indices, on Binary.com's user friendly Smart Trader. However, they can find a full complement of Synthetic Indices on MetaTrader 5, allowing the trader to trade these markets using the tools offered by this advanced trading platform (it is the successor to MT4). The trader may either trade Synthetic Indices from MT5 on Binary.com or with the same login trade from DMT5 on Deriv, Binary.com's new platform. The trader may use the analysis tools provided on the platform, with the caveat that these are not real markets. There is no minimum deposit requirement, leverage is 1000:1 (increasing leverage increases risk) and there are low minimum trade sizes on selected Indices, letting the trader reduce their exposure. The trader may create demo accounts to practice trading and try out ideas.
If you have more questions check out our Frequently Asked Questions page or Contact Us
