Beginner's Guide to Volatility Trading on Deriv
Advanced Volatility and Synthetic Indices Trading Guide
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1. Over/Under Strategy:
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- This strategy predicts whether the last digit of a market price will be OVER or UNDER a certain number.
Example: Predict if the last digit of the next tick will be over 5.
- Recommended markets: Synthetic Indices like Volatility 25, 50, or 75.
Steps:
- Choose "Digits Over/Under" on DTrader.
- Select your stake and duration (1 to 5 ticks for beginners).
- Analyze the price behavior using Digit analysis tools.
- Place the trade: select "Over" or "Under" based on your prediction.
2. Synthetic Indices Explained:
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Synthetic indices are 100% generated by Deriv's algorithms and are not affected by world events.
- Volatility Indices: Simulate regular market movements with different speed levels.
- Crash/Boom Indices: Designed to have sudden spikes ("crashes" or "booms").
- Step Index: Moves in fixed steps, slower than other indices.
3. Deriv MT5 Trading Tips:
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Beginner's Guide to Volatility Trading on Deriv
- Deriv MT5 allows you to trade synthetic indices, forex, commodities, and crypto.
- Use indicators like RSI, Bollinger Bands, and Moving Averages.
- Recommended lot sizes for beginners: 0.001 to 0.01.
- Always set a Stop Loss to protect your funds.
- Try demo trading first on DMT5 before using real money.
4. Risk Management:
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- Never risk more than 5% of your account on one trade.
- Avoid emotional trading-have a clear plan.
- Use demo accounts to test new strategies.
5. Best Volatility Markets for Practice:
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- Volatility 25 Index (Balanced movement)
- Step Index (Low risk, slow movement)
- Crash 500 Index (Good for learning spikes)
Final Tip:
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Start slow, track your progress, and keep learning daily. Trading is a skill that improves with practice.
Happy Trading and Stay Disciplined!
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