Lesson
2
Volatility Indices | Beginner

Why trade Volatility indices

Duration
5
minutes

Volatility Indices are a revolutionary financial product offered by Deriv, making them an appealing choice for traders aiming to leverage market volatility in a unique manner. These indices not only provide an opportunity to trade on simulated price movements, but they also offer advantages in terms of accessibility, fairness, and flexibility that traditional markets often cannot match.


24/7 Availability for Greater Flexibility

One of the standout features of Volatility Indices is their around-the-clock availability. Unlike many traditional financial markets that operate within specific hours, Volatility Indices are accessible 24/7, 365 days a year. This constant availability allows traders to enter and exit positions at their convenience, irrespective of their location. As a result, traders can seize potential opportunities in various market conditions, enhancing their ability to respond promptly to price movements and changes.

Key Benefits:

  • No Time Constraints: Trade at any hour of the day or night, accommodating any schedule.
  • Global Accessibility: Engage in trading from anywhere in the world, making it easier to manage your portfolio.

Resistance to Manipulation

Another significant advantage of Volatility Indices lies in their inherent resistance to market manipulation. Unlike traditional financial markets, where large orders can sway prices or insider information can give certain players an edge, Volatility Indices provide a level playing field. Because they are immune to the typical influences that can skew traditional markets, individual traders can trade without concerns of unfair advantages held by larger investors or groups.

Fair Pricing:

  • Consistent Bid-Offer Spreads: The spreads on Volatility Indices remain stable, promoting transparency in trading costs and reducing the uncertainties that can arise from fluctuating market conditions.

Customizable Risk-Reward Opportunities

Volatility Indices offer a range of risk-reward possibilities, making them suitable for various trading strategies. With an impressive volatility range from as low as 10% to as high as 250%, traders have the flexibility to tailor their trading strategies to align closely with their risk appetite. This customization empowers traders to engage with the volatility they seek while managing their exposure effectively.

Tailored Strategies:

  • Adjustable Volatility Levels: Depending on your trading style, you can select indices that precisely match your risk tolerance and profit goals.

Conclusion

To summarize, Volatility Indices emerge as a flexible, fair, and continuously accessible trading instrument that can enhance a trader's portfolio. With their 24/7 availability, resistance to manipulation, and customizable nature, these indices offer a unique opportunity to capitalize on market volatility. We encourage you to explore the exciting world of Volatility Indices and consider incorporating them into your trading strategy.

Get ready to discover what Volatility Indices can do for you!

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Lesson
2
of
11
Lesson
2
Volatility Indices | Beginner

Why trade Volatility indices

Duration
5
minutes

Volatility Indices are a revolutionary financial product offered by Deriv, making them an appealing choice for traders aiming to leverage market volatility in a unique manner. These indices not only provide an opportunity to trade on simulated price movements, but they also offer advantages in terms of accessibility, fairness, and flexibility that traditional markets often cannot match.


24/7 Availability for Greater Flexibility

One of the standout features of Volatility Indices is their around-the-clock availability. Unlike many traditional financial markets that operate within specific hours, Volatility Indices are accessible 24/7, 365 days a year. This constant availability allows traders to enter and exit positions at their convenience, irrespective of their location. As a result, traders can seize potential opportunities in various market conditions, enhancing their ability to respond promptly to price movements and changes.

Key Benefits:

  • No Time Constraints: Trade at any hour of the day or night, accommodating any schedule.
  • Global Accessibility: Engage in trading from anywhere in the world, making it easier to manage your portfolio.

Resistance to Manipulation

Another significant advantage of Volatility Indices lies in their inherent resistance to market manipulation. Unlike traditional financial markets, where large orders can sway prices or insider information can give certain players an edge, Volatility Indices provide a level playing field. Because they are immune to the typical influences that can skew traditional markets, individual traders can trade without concerns of unfair advantages held by larger investors or groups.

Fair Pricing:

  • Consistent Bid-Offer Spreads: The spreads on Volatility Indices remain stable, promoting transparency in trading costs and reducing the uncertainties that can arise from fluctuating market conditions.

Customizable Risk-Reward Opportunities

Volatility Indices offer a range of risk-reward possibilities, making them suitable for various trading strategies. With an impressive volatility range from as low as 10% to as high as 250%, traders have the flexibility to tailor their trading strategies to align closely with their risk appetite. This customization empowers traders to engage with the volatility they seek while managing their exposure effectively.

Tailored Strategies:

  • Adjustable Volatility Levels: Depending on your trading style, you can select indices that precisely match your risk tolerance and profit goals.

Conclusion

To summarize, Volatility Indices emerge as a flexible, fair, and continuously accessible trading instrument that can enhance a trader's portfolio. With their 24/7 availability, resistance to manipulation, and customizable nature, these indices offer a unique opportunity to capitalize on market volatility. We encourage you to explore the exciting world of Volatility Indices and consider incorporating them into your trading strategy.

Get ready to discover what Volatility Indices can do for you!

Quiz

What is one of the main advantages of trading Volatility Indices?

?
They are only available during market hours.
?
They can be traded 24/7, 365 days a year.
?
They require a large initial investment.
?

How do Volatility Indices resist manipulation compared to traditional markets?

?
Large orders cannot significantly sway their price movements.
?
They are influenced by economic events.
?
They follow strict market regulations.
?

What range of volatility does Deriv's Volatility Indices offer?

?
5% to 100%
?
10% to 250%
?
10% to 250%
?

Lesson
2
of
11