What Are The Different Types Of Boom & Crash Indices Offered By Deriv?
There are six types of boom and crash indices namely:
- Boom 300 Index
- Boom 500 Index
- Boom 1000 Index
- Crash 300 index
- Crash 500 Index
- Crash 1000 Index
The Boom & Crash 300 indices have, on average, 1 spike in the price series every 300 ticks.
The Boom 500 index has, on average, 1 spike in the price series every 500 ticks while the Boom 1000 index has on average 1 spike in the price series every 1000 ticks.
Similarly, the Crash 500 Index has on average 1 drop in the price series every 500 ticks, while the Crash 1000 Index has an average of one drop in the price series every 1000 ticks.
The difference between boom and crash is that the boom indices have spikes going up while the crash indices have spikes going down.
Here’s the content rewritten with tables:
Comprehensive Guide To Boom & Crash Indices Trading (2024)
Learn how to trade boom & crash indices from Deriv which are popular worldwide
Get to know the best boom & crash indices brokers
Learn about profitable strategies that you can use in boom & crash indices trading
Sign Up To Trade Boom & Crash Indices
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What Are Boom & Crash Indices From Deriv?
Boom and crash indices are synthetic indices from Deriv that are programmed to reflect rising and falling real-world monetary markets.
In other words, they behave specifically like a rising (booming) or falling (crashing) financial market.
What Are The Different Types Of Boom & Crash Indices Offered By Deriv?
There are six types of boom and crash indices namely:
| Boom Indices | Average Spikes (Ticks) |
|---|---|
| Boom 300 Index | 1 spike every 300 ticks |
| Boom 500 Index | 1 spike every 500 ticks |
| Boom 1000 Index | 1 spike every 1000 ticks |
| Crash Indices | Average Drops (Ticks) |
|---|---|
| Crash 300 Index | 1 drop every 300 ticks |
| Crash 500 Index | 1 drop every 500 ticks |
| Crash 1000 Index | 1 drop every 1000 ticks |
Which Brokers Offer Boom & Crash Indices?
Deriv is the only broker that offers boom & crash indices because it owns the algorithm that moves these indices. No other broker has access to the algorithm.
Boom & Crash Indices Minimum Lot Sizes
Lot sizes determine the trade size you can place. Below are the minimum crash boom indices lot sizes.
| Index | Minimum Lot Size |
|---|---|
| Boom 1000 Index | 0.2 |
| Crash 1000 Index | 0.2 |
| Boom 500 Index | 0.2 |
| Crash 500 Index | 0.2 |
| Boom 300 Index | 0.2 |
| Crash 300 Index | 0.2 |
Boom & Crash Indices Minimum Deposit & Margin Requirements
You can deposit as little as $1 to your synthetic indices account. However, you will not be able to trade crash boom indices with such a low account balance.
Below are the margin requirements and the minimum account deposit needed to trade the different boom and crash indices.
| Boom & Crash Index | Margin Requirements for 0.2 Lot Size | Minimum Advisable Account Balance Required |
|---|---|---|
| Boom 1000 Index | $6.01 | $10 |
| Boom 500 Index | $2.51 | $5 |
| Crash 1000 Index | $3.53 | $5 |
| Crash 500 Index | $3.72 | $5 |
| Boom 300 Index | N/A | N/A |
| Crash 300 Index | N/A | N/A |
How Do You Trade Boom & Crash Indices On DMT5?
To trade boom and crash indices in DMT5 you need to open a synthetic indices account in Deriv. Below are the steps that you follow to open the account.
- Open Your Deriv Main Account
Start by opening your main Deriv account. This account will allow you to trade various markets like binary options, forex, and synthetic indices. You can open the Deriv main account here.
| Steps | Actions |
|---|---|
| 1. | Enter your email in the box provided and click on “Create Demo Account“. |
Deriv will send you an email to verify your email address. Open that email and click on the link to verify your email address and finish setting up your account. If you do not see the email try checking your spam folder.
Choose your preferred password & country of residence.
- Open A Deriv Real Account
After verifying your email address, you will have a demo account on Deriv with $10,000 in virtual funds.
| Steps | Actions |
|---|---|
| 1. | Log into the demo account that you created in the first step. Click the dropdown arrow beside the $10,000 demo balance and click on the ‘Real’ tab. |
Next, click on the Add button and choose the default account currency. You will use this default currency to deposit, trade & withdraw and you can’t change it after your first deposit. It is important to make sure you choose a currency that is convenient for you.
You will need to supply some details to finalize your Deriv real account registration. Enter the following details such as your real name, address & phone number.
Ensure that you use details that you can later verify. This is because as part of its Know Your Customer (KYC) policy, Deriv will ask you to upload your proof of residence and ID or passport.
These documents should have the same details as the ones you supplied during the registration.
- Open A DMT5 Synthetic Indices Trading Account
Next, you need to create a dedicated synthetic account to trade boom and crash indices on DMT5.
| Steps | Actions |
|---|---|
| 1. | Click on the ‘Real’ tab and then click on the Add button next to the synthetic account. |
| 2. | Set the password for the synthetic indices account. It’s not the main account password, you will only use it to access the synthetic indices trading account. |
After creating the account, you will now see the account listed with your login ID. You will also get an email with your login ID that you will use to log in to the mt5 synthetic indices account.
- Download the DMT5 Platform
Next, you need to download the DMT5 platform.
| Steps | Actions |
|---|---|
| 1. | Click on the synthetic account as shown below. |
You will then be taken to a page with links to Metatrader 5 application for various systems like Android, Windows, iOS etc at the bottom of the page.
Download the one you want to use.
- Login To The DMT5 Platform
After downloading and installing your DMT5, you will then need to log in to your trading account.
| Steps | Actions |
|---|---|
| 1. | Click on Settings > Log in to new account. |
You will need to enter the following details:
- Broker: Deriv Limited
- Server: Deriv-Server
- Account ID: These are the numbers that you see next to your Synthetic indices account. You will also get this login id in the email that you get after opening the account
- Password: Enter the password that you chose when you opened the synthetic account in step 3 above
Make sure you type these correctly because if you make mistakes you will not be able to connect to your trading account.
After logging in and transferring funds you can start trading.
Frequently Asked Questions On Trading Boom & Crash Indices
Can I trade boom & crash indices on MT4?
No, you can’t. You can only trade boom and crash indices on DMT5. Deriv, the only broker with volatility indices, only uses MT5 servers.
Which brokers have boom and crash?
Only Deriv has boom and crash indices because it created the algorithm that runs them.
What are crash and boom indices on Deriv?
Crash and boom indices on Deriv are synthetic indices that simulate the performance of markets that experience significant volatility. These indices are generated using a random number generator, and they are designed to provide traders with the opportunity to speculate on the direction of future price movements.
What are the different types of crash and boom indices offered by Deriv?
Deriv offers a variety of crash and boom indices, including:
- Crash/Boom 1000: This index experiences a crash or boom every 1000 ticks on average.
- Crash/Boom 500: This index experiences a crash or boom every 500 ticks on average.
- Step indices: These indices have an equal probability of up or down movement in price series with a fixed step size of 0.1.
How do I trade crash and boom indices on Deriv?
To trade crash and boom indices on Deriv, you will need to create a trading account and deposit funds. Once you have done so, you can open a trade by selecting the crash and boom index you want to trade, specifying the amount you want to trade, and choosing whether you want to buy or sell.
What are the risks of trading crash and boom indices on Deriv?
Crash and boom indices are highly volatile, and there is a significant risk of loss when trading them. It is important to understand the risks involved before you start trading and to use risk management tools such as stop-loss orders to limit your losses.
What are the benefits of trading crash and boom indices on Deriv?
Trading crash and boom indices on Deriv offers several benefits, including 24/7 trading, low minimum trade sizes, and the ability to trade on both rising and falling markets.
Can I use leverage when trading crash and boom indices on Deriv?
Yes, Deriv offers leverage on crash and boom indices, which allows you to trade with a smaller amount of capital. However, leverage also increases the risk of losses, so it is important to use it wisely.
