Synthetic Indices

Understand the market. Choose the right tool. Keep control of the risk.

A practical starting point for synthetic indices, visual bot builders, automated strategies, digit analysis, volatility indices, and demo-account testing.

Last reviewed: 20 August 2026

What are synthetic indices?

Synthetic indices are simulated markets whose price movements are generated by a broker's systems rather than by the buying and selling of real-world shares or commodities. Deriv groups these products within its current Derived Indices range.

They can provide continuous market activity beyond conventional exchange hours, but the exact instruments, availability, quote precision, and contract types depend on the broker. Always confirm the current product specification before building or running a strategy.

Read the official Deriv market information

Four focused workspaces

Choose a tool by the job it needs to do.

Binary Bot

A focused visual block builder for assembling and testing automated rules.

Explore Binary Bot

Deriv Bot

A modern builder with ready-made bots, rolling analysis, charts, and journals.

Explore Deriv Bot

AI Robot

An algorithm-assisted environment for structured market and trading workflows.

Explore AI Robot

Analysis Tool

A research workspace for digit statistics, market behaviour, and visual analysis.

Explore Analysis Tool

Builder comparison

Binary Bot or Deriv Bot?

FeatureBinary BotDeriv Bot
Visual block buildingYesYes
Interface styleCompact and familiarModern multi-panel workspace
Built-in analysisCore market dataRolling digit and market analysis
Ready-made botsLoad your own filesDedicated library
Best fitFocused visual workflowAll-in-one automation workspace
Read the full comparison

Digit contracts

Know what the data represents.

Digit tools read the final displayed digit of each broker quote. They can summarize Matches/Differs, Even/Odd, and Over/Under observations where those contracts are available.

A rolling history window recalculates as new ticks arrive and older ticks leave. The highest or lowest frequency describes that sample only; it does not guarantee what the next tick will be.

Understand digit contracts

Volatility indices

Use the correct market and precision.

Tools for volatility indices should clearly show the market symbol, connection state, quote precision, contract terms, and history length. A mismatch in any of these can invalidate a rule.

Use charts for movement, analysis panels for statistics, builders for execution logic, and journals to verify what actually happened.

Compare volatility-index tools

Demo-first workflow

Test the complete lifecycle before considering real funds.

  1. 01
    Choose one market

    Confirm symbol, account currency, and available contracts.

  2. 02
    Build the smallest rule

    Use a fixed demo stake and an explicit stop condition.

  3. 03
    Watch every stage

    Check proposal, purchase, open contract, settlement, and journal.

  4. 04
    Review failures

    Record rejected values, disconnects, and unintended restarts.

Risk-management principles

Automation should make limits clearer, not hide them.

  • Use a hard stop that prevents new purchases.
  • Treat stake progressions as increased exposure, not protection.
  • Verify the broker report after any disconnect.
  • Never borrow to trade or use money you cannot afford to lose.
Read the full risk disclosure

Common questions

Synthetic indices FAQ

Are synthetic indices the same as ordinary stock indices?

No. Synthetic indices are simulated markets generated by a broker's systems. They do not represent ownership in the companies that make up a conventional stock-market index.

Does a trading bot guarantee better results?

No. A bot applies predefined instructions consistently, but the strategy can still lose and technical interruptions can occur. Automation does not remove trading risk.

Should I test a bot on demo first?

Yes. Demo testing helps verify the strategy logic, trade lifecycle, limits, and error handling. Demo results do not guarantee real-account performance.

What is the difference between a bot builder and an analysis tool?

A bot builder turns explicit rules into automated actions. An analysis tool summarizes market data and helps you inspect conditions; it does not have to place trades.

Continue learning

Turn this overview into a safer test plan.

Use the guides to compare platforms, understand contracts, and build a repeatable demo workflow.

Browse all guides