Boom and Crash: the complete guide to understanding these synthetic indices

The Boom and Crash are among the most popular synthetic indices available on Deriv.

They attract thousands of traders thanks to their distinctive movements and availability 24/7.

But what exactly are the Boom and Crash clues? How do they work? What's the difference between Boom and Crash?

In this guide, discover everything you need to know before you start.

What are the Boom and Crash clues?

The Boom and Crash indices are synthetic indices.

Unlike Forex or equities, they are not influenced by economic announcements, central banks or global news.

They are designed to reproduce market movements according to predefined parameters and remain accessible at any time.

What's the difference between Boom and Crash?

Even if they belong to the same family, their behaviour is different.

Boom indices are known for their rapid bull movements, often called Spikes.

Crash indices, they are known for their quick down movements, also called Spikes.

Each index has its own dynamics and requires an appropriate approach.

What clues does Boom and Crash exist?

The main indices available are:

• Boom 300

• Boom 500

• Boom 1000

• Crash 300

• Crash 500

• Crash 1000

Each index has its own characteristics. It is therefore advisable to study them individually before trading them.

Why do traders like Boom and Crash indices?

The Boom and Crash indices are popular because they offer:

• 24/7 availability;

• graphs compatible with technical analysis;

• access via MetaTrader 5;

• Several levels of volatility.

They also allow you to practice in a demonstration account before you go to the real account.

How to Trade Boom and Crash Indices?

Before each position, it is recommended that:

• analyse the trend;

• identify areas of support and resistance;

• wait for confirmation according to your strategy;

• define a Stop Loss;

• properly manage your risk.

A clear method remains more important than the search for quick wins.

Errors of beginners

Among the most common errors:

• trader without strategy;

• opening positions under the effect of emotion;

• increase the volume after a loss;

• neglect risk management;

• believe that every move can be anticipated.

Discipline is essential to progress.

Start free in 2 steps

Step 1: Create your Deriv account for free

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You can discover Boom and Crash indices with a demo account.

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Step 2: Join Bono Trading training for free

Once your account is created, join Bono Trading for free.

You will learn in particular:

How to Trade Boom and Crash Indexes

The basics of technical analysis

Trading strategies

Risk management

How to use MT5

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