How do synthetic clues work? Simple explanation

Synthetic indices are increasingly popular with traders. Yet many beginners don't really understand how they work.

Are they linked to financial markets? Do they depend on the world economy? Why are they available 24/7?

In this guide, simply find out how synthetic indices work.

What's synthetic clues?

Synthetic indices are markets created from mathematical models designed to reproduce different levels of volatility.

Unlike traditional markets such as Forex or equities, they do not respond to economic announcements, business results or political events.

Their behaviour is based on predefined parameters.

Why are they available 24 hours a day?

Traditional markets close according to the schedules of different financial centres.

Synthetic indices do not depend on a scholarship.

They are therefore accessible continuously, allowing you to trade at any time of day or week.

Why are there several clues?

Each index has a different level of volatility.

For example, some progress relatively stablely, while others show larger movements.

This diversity allows traders to choose the market that best fits their experience and strategy.

Do graphics work as in Forex?

Yes.

Synthetic indices use the same analytical tools as other markets.

You can use:

• supports and resistors;

• trends;

• Chartist figures;

• Japanese candlesticks;

• technical indicators.

The principles of technical analysis remain the same.

Are synthetic indices predictable?

No market can be predicted with certainty.

The goal of the trader is not to guess the future, but to analyze the probabilities and manage his risk properly.

A good strategy is based on an appropriate method, discipline and capital management

How to start?

Before trading with a real account, it is advisable to:

• use a demonstration account;

• learn how to read graphics;

• test your strategy;

• respect strict risk management.

These steps allow for better progress.

Conclusion

Synthetic indices offer a trading environment that is continuously available and accessible to different trading profiles.

Before you start, take the time to understand their functioning and acquire the basics of technical analysis in order to develop a solid method.

Start free in 2 steps

Step 1: Create your Deriv account for free

Create your Deriv account free with my partner link.

You can access a demo account to discover synthetic indices without risking your money.

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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:

The operation of synthetic indices

Technical analysis

Trading strategies

Risk management

How to use MT5

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