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Find answers to the most common questions you may have during your trading journey.

About synthetic indices

Are synthetic indices affected by economic news or central banks?

Synthetic indices are not affected by economic news or central bank events because they are not linked to real-world economies. Their price movements are generated algorithmically, so factors such as interest rate decisions, inflation data, or geopolitical developments do not influence them.

Do synthetic indices move randomly?

Synthetic indices do not move randomly, but follow algorithmic rules designed to simulate real-world market volatility. Their price movements are generated mathematically to reflect market-like behaviour rather than being driven by actual economic events or assets.

What is an example of a synthetic index?

An example of a synthetic index is Volatility 75, which is designed to simulate a market with consistent and fast price movements. It mimics real market volatility but is entirely generated by algorithms and is not influenced by economic news or external events.

Why are there different versions of Boom, Crash, and Volatility indices?

Different versions of Boom, Crash, and Volatility indices refer to the average frequency of key price events such as spikes or drops. The numbers, such as 300, 600, or 1000, indicate how often these movements are expected to occur.

For example, Boom 300 typically produces more frequent upward spikes, while Crash 1000 tends to show less frequent but smoother downward movements. This allows traders to choose a volatility profile that aligns with their trading strategy.

What is the Boom 500 synthetic index?

Boom 500 is a synthetic index that simulates market price action with occasional upward spikes generated by a fixed algorithm. It is designed to produce sharp upward movements at intervals, making it suitable for momentum or breakout trading strategies. The index operates independently of real-world markets and is driven entirely by algorithmic price generation.

What is the most volatile synthetic index?

Among synthetic indices, the Volatility 100 index typically exhibits the highest level of price movement intensity and speed. It is designed to produce larger and more frequent price fluctuations, making it more suitable for experienced traders seeking fast-moving market conditions.

Do synthetic indices have trading sessions?

Synthetic indices do not have trading sessions like forex or stock markets. They are available for trading 24 hours a day, seven days a week, including weekends and holidays, offering continuous market access and flexibility for traders.

What moves synthetic indices prices?

Synthetic indices prices are driven by algorithms designed to simulate real market behaviour, including volatility, momentum, and randomised price movements. They are not influenced by economic news, earnings reports, or external market events, which allows traders to focus primarily on technical analysis.

Trading synthetic indices

What is the best time to trade synthetic indices?

Synthetic indices trade 24/7, so there is no fixed market open or close. The best time to trade depends on your strategy, as some traders prefer quieter periods with fewer spikes, while others focus on higher-volatility conditions to capture larger price movements.

Are synthetic indices suitable for beginners?

Synthetic indices can be suitable for beginners, particularly for learning technical analysis and trading setups. However, they can move quickly, so it is recommended to start on a demo account, understand how each instrument behaves, and trade with smaller positions until you gain confidence.

Can I hedge synthetic indices with real-world markets?

No, synthetic indices cannot be effectively hedged with real-world instruments because there is no direct correlation between them. These markets are algorithmically generated and designed for technical and price pattern trading rather than macro or cross-market hedging strategies.

Technical and platform questions

How is synthetic indices pricing calculated?

Synthetic indices pricing is generated using algorithms and random number generators designed to simulate real market volatility patterns. The process follows a structured mathematical model that aims to replicate market-like behaviour without relying on an underlying asset.

Can ThinkMarkets synthetic indices be manipulated?

No, ThinkMarkets synthetic indices are not manipulated by the broker. Their pricing follows fixed and transparent algorithmic logic, operating within regulated frameworks and subject to regular compliance reviews.

What is the minimum amount to trade synthetic indices?

The minimum amount to trade synthetic indices depends on your account currency, leverage settings, and the contract specifications of the instrument. On ThinkTrader and MetaTrader 5, many synthetic indices can be traded with small position sizes, making them accessible with lower capital. For exact trade size and margin requirements, refer to your trading platform and the synthetic indices contract specifications.

Can I automate my strategy on synthetic indices?

Yes, you can automate trading strategies on synthetic indices. These instruments are available on MetaTrader 5 and support Expert Advisors, custom indicators, scripts, and scalping strategies, making them suitable for automated trading and backtesting.