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Synthetic Indices Trading with Vantage X

“Synthetic Indices” refers to financial instruments that are created to track the performance of a specific financial market or asset, such as a stock index, currency, or commodity. Synthetic indices are often used for trading and investment purposes, as they provide exposure to a broad range of assets with a single trade.

Synthetic indices are constructed using derivatives, such as options or futures contracts, which are designed to mimic the performance of the underlying asset or market. The value of a synthetic index is derived from the performance of its underlying assets, and it is often used to provide a benchmark for the performance of a particular market or sector.

 

Overall, synthetic indices are a popular tool for investors and traders looking to gain exposure to specific financial markets or assets. However, it is important to understand the underlying mechanics of synthetic indices and the risks involved before investing in them.

Why Trade Synthetic Indices

Trading synthetic indices is similar to trading other financial instruments, such as stocks or commodities. Investors can buy or sell synthetic indices through financial intermediaries, such as brokers, and trade them on financial markets, such as exchanges or over-the-counter (OTC) markets.

Synthetic indices offer several benefits, including reduced risk and greater flexibility, as investors can trade exposure to a specific market or asset without actually owning the underlying assets. Additionally, synthetic indices can be used to hedge against market risk, or to speculate on market movements.

Who Offer Synthetic Indices Trading?

Deriv Broker offer Synthetic Indices Trading.

How to trade Synthtic indices automatically?

 

    VantageX Automatically trades Synthetic indices including Crash 100, Crash 500 , Volatility 75 and Volatility 100. With Accuracy of upto 91% and minimum draw down

Synthetic Indices lot sizes

Volatility 10 Index =>0.30 Min
Volatility 25 Index =>0.50 Min
Volatility 50 Index =>0.50 Min
Volatility 75 Index =>0.001 Min
Volatility 100 Index =>0.01 Min
Crash 500 =>0.20 Min
Boom 500 =>0.20 Min
Step Index =>0.10 Min

Benefits of VantageX trading.

  • Fully Automated Trading
  • Minimum Draw Down
  • Maximum Accuracy of Upto 92%
  • 24/7 execution of trades without Human interaction
  • Three algortithmic Strategies
  • Artificial Intelligence empowered.

100% gain in three weeks

Synthetic Indices Auotmated Trading

VantageX is a fully automatic trading robot developed to trade synthetic indices EA, such as those offered by Deriv and other brokers who operate in a similar manner. When entering trades, the Vantage PointX makes use of an algorithm that recognises when a trend is about to reverse Using Artificial Intelligence. The following indices are the primary focus of the EA’s design.

What is Traded in Synthetic Indices

  • Step index
  • Boom 1000 Index
  • Crash 1000 Index
  • Boom 500 Index
  • Crash 500 Index
  • Volatility 10 Index
  • Volatility 25 Index
  • Volatility 50 Index
  • Volatility 75 Index
  • Volatility 100 Index
  • Volatility 10 Index

Supported Pairs by VantageX

VantageX supports all pairs mentioned above

Supported Pairs by VantageX

VantageX supports all pairs mentioned above

Different Kind of Synthetic Indices:

  1. Equity Synthetic Indices: Think of these like a TV channel showing highlights from multiple games. Instead of tracking just one stock, they show the performance of many, like the S&P 500 Index which represents 500 of the big U.S. companies.
  2. Commodity Synthetic Indices: These are like tracking the stars of raw materials. From oil to gold to crops, the Bloomberg Commodity Index, for instance, keeps tabs on 23 major commodities.
  3. Currency Synthetic Indices: Picture these as a global currency exchange spotlight. The U.S. Dollar Index, for example, tells us how the dollar is doing compared to six other currencies.
  4. Fixed Income Synthetic Indices: Imagine a spotlight on the world of bonds. The Bloomberg Barclays U.S. Aggregate Bond Index is a good example, focusing on top-tier U.S. bonds.
  5. Volatility Synthetic Indices: These gauge the drama level in markets. The CBOE Volatility Index (VIX), for example, measures the expected ups and downs of the S&P 500 Index.
  6. Alternative Synthetic Indices: Venturing beyond traditional categories, these track unique assets like hedge funds or private equity. The HFRX Global Hedge Fund Index, for instance, gives us a peek into how global hedge funds are performing.

Trade Synthetic Indices Automatically with VantagepointX

Trade Crash 500, Crash 1000, Boom and Volatility 75 and Volatility 100 index with First AI empowered Vantage point X trading Robot.

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  1. Basket Synthetic Indices: Picture a digital shopping basket filled with different assets. Its worth is determined by how these assets perform.
  2. Sector Synthetic Indices: Focus on a particular industry with these, be it tech, health, or energy, to see how it’s doing.
  3. Commodity Synthetic Indices: These zoom in on goods, from gold and silver to oil. It’s like getting the market pulse of raw materials.
  4. Volatility Synthetic Indices: Interested in market mood swings? That’s what these track, with the VIX index spotlighting the S&P 500’s ups and downs.
  5. Currency Synthetic Indices: Think of a currency popularity contest. For instance, the US dollar index measures its strength against other big-player currencies.
  6. Style Synthetic Indices: These capture specific investment approaches, whether it’s chasing value or growth, blending both fundamental and tech analysis.

To simplify, synthetic indices give us a digital window to view and understand asset trends without diving deep into each one.

Advantages of Synthetic Indices:

Synthetic indices offer a smart shortcut for traders. Wondering how? Let’s simplify. Imagine wanting to taste an entire pie but without baking it yourself. Synthetic indices let you do just that, but for trading! Instead of diving deep and purchasing every ingredient (or asset), you can enjoy the whole flavor with just one slice (or financial instrument). It’s a cost-saver as you skip multiple fees and the hustle of handling many assets.

Another cool thing about synthetic indices? They’re like protective bubbles. While the real-world market can shake due to company news or other events, synthetic indices, especially those built using algorithms, might remain steady. They often don’t get ruffled by the ups and downs of individual companies. So, for those aiming to bet on the bigger picture of a market or index rather than a single company, synthetic indices might be your go-to choice.

Trade Synthetic Indices Automatically with VantageX

Trade Crash 500, Crash 1000, Boom and Volatility 75 and Volatility 100 index with First AI empowered VantageX trading Robot.

Buy Now

Synthetic Indices FAQ

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What are synthetic indices?

What do you mean by synthetic indices. Think of synthetic indices like video game versions of real-world stock markets. Just like in a game, they act like real markets, but they don't get shaken up by actual world events. The cool part? They're powered by super-secure random numbers, always move at a steady pace, and you don't have to worry about sudden market changes or not being able to trade.

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How do we make these indices?

Crafting synthetic indices involves tools called derivatives – like futures, options, or swaps. The worth of a synthetic index ties back to how these underlying assets or derivatives perform.

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Why should someone consider investing in them?

Choosing synthetic indices has its perks. You can spread your investment across various assets (diversification), save on transaction fees, and even dip your toes in markets that might otherwise be tough to enter.

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Are there any risks with synthetic indices?

Sure, there are challenges. With synthetic indices, there might be risks linked to the parties involved (counterparty risk), possible hitches in buying or selling them (liquidity risk), and sometimes they might not mirror the exact asset performance (tracking error). Plus, synthetic indices can be trickier than traditional ones, so always dive in with your eyes wide open.

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How do these indices stand apart from regular ones?

While classic indices usually focus on how heavy a stock or bond is in the market (market capitalization), synthetic indices work differently. They’re built using derivatives and might not always show the true weight of the actual assets.

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Can average Joes and Janes trade in these indices?

Absolutely! Folks can dive into synthetic indices using tools like ETFs or mutual funds linked to them. Just hop onto a brokerage account, and you're good to go.

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