Synthetic indices are gaining serious traction among retail traders. They’re available 24/7, can move faster than most markets, and are tailor-made for strategy-focused trading.

But what exactly are they? How do you trade them? And are they right for your trading style?

In this guide, we’ll walk you through everything you need to know - from how synthetic indices work to the tools and platforms you need to get started.

Introduction: Why synthetic indices matter

Traditional markets follow real-world events such as economic news, earnings, and global politics. Synthetic indices don’t. They’re algorithmic instruments built to mimic market behavior in a fully simulated environment.

Why does this matter?

It creates a unique trading opportunity: high-volatility, technical-focused, and round-the-clock price action.

What are synthetic indices?

Synthetic indices are digital markets generated using computer algorithms. They’re not based on actual assets like currencies, stocks, or commodities. Instead, they simulate the price behavior of real markets based on fixed rules, especially around volatility.

In simple terms: synthetic indices offer you the movement and excitement of traditional markets, but with complete independence from real-world events.

How are they simulated?

Synthetic indices use a random number generator (RNG) governed by strict mathematical models to create price action.

What’s unique:

Consistent volatility (e.g., 50%, 75%, 100%)
No news interference
No market sessions

Key benefits of synthetic indices

Why do so many traders switch to synthetic?

24/7 trading: No market closures, ever. Trade day or night, weekdays or weekends.
High volatility: Designed with constant movement. Perfect for active traders.
Technical focus: No news events - cleaner charts and price action.
Controlled environment: Volatility levels are fixed, so you can trade based on skill and strategy.

Popular types of synthetic indices

Synthetic indices come in different forms. Each one behaves differently, so you can find the right match for your style.

Volatility indices

These are simulated markets with constant volatility levels.

Volatility 50 – Moderate speed
Volatility 75 – More momentum
Volatility 100 – High-speed action

They behave like S&P 500 or VIX equivalents but have constant behavior and are not driven by external news factors.

Crash and Boom indices

These include sudden price spikes.

Crash indices: Sudden drops happen every 300/600/1000 ticks
Boom indices: Sudden upward moves on similar intervals

These moments create potential for quick setups.

Jump indices

Price “jumps” occur randomly every 20 minutes.

Available in 50, 75, and 100 volatility levels
Balanced between consistent movement and sudden action

How to trade synthetic indices

Trading synthetic indices is like trading forex or stocks, excluding the fundamentals.

Platforms that offer them

You can trade synthetic indices on 10x Capital AB Trader or MT5 trading platforms. With 10x Capital AB , they’re built directly into the platforms’ trading experience, so you get professional tools, fast execution, and flexibility.

Start trading synthetic indices on 10x Capital AB Trader and earn 10x Capital AB Rewards loyalty point, which you can redeem for trading credit or cash.

24/7 availability

Unlike forex or stocks, synthetics never close. You can trade on weekdays, weekends, even late at night.

This is ideal for:

Traders in different time zones
Weekend traders
Part-time or after-work sessions

Tools, charting, and leverage

Charting: Use indicators, trendlines, and price patterns just like you would in traditional markets.
Leverage: 10x Capital AB offers leverage of up to 1:2500 on select synthetic indices - one of the highest in the industry.
Demo access: Not ready to go live? You can always try a demo account and practice without risk.

Risks and considerations

With high speed comes high responsibility.

What to keep in mind

Fast movement is high risk
Always use stop-losses and manage your position size.
Algorithmic means no fundamentals
Don’t expect earnings or economic data to matter - synthetic trading is purely technical.
Psychology plays a bigger role
Quick moves mean emotions can interfere. Stick to your plan.

Who should trade synthetic indices?

Synthetic indices aren’t for everyone, but they’re a great fit for certain types of traders.

Ideal for:

Technical traders: If you love charting, patterns, and indicators - this is your space.
Volatility seekers: Love price action? These indices are designed to move.
Weekend warriors: Don’t want to wait for Monday? Trade whenever you want.
Demo testers: Not sure yet? Practice synthetic indices trading risk-free on a demo account.

Comparison: Synthetic indices vs real indices

Feature	Synthetic indices	Real indices (e.g. S&P 500)
Availability	24/7	Limited (market hours only)
News impact	None	High
Volatility	Fixed and predictable	Variable
Price drivers	Algorithmic	Economic and political events
Platform	10x Capital AB, MT5	10x Capital AB, MT5, exchanges
Beginner friendly	Yes	Depends on market

Ready to explore synthetic indices?

Synthetic indices are fast and built for 24/7 strategies. Whether you're a technical analyst, weekend trader, or just looking to learn, they offer an alternative way to trade with structure and clarity.

Open an account to start trading synthetic indices today

Practice first with a demo

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