Hybrid Indices, a new era of synthetic trading

The trading landscape at Deriv has evolved once more with the launch of the new Hybrid Indices. Designed to mirror real-world market conditions more accurately, Hybrid Indices blend the core attributes of our well-known Crash/Boom indices with the dynamic nature of volatility indices.

‍

Let’s explore the details of these dynamic new instruments.

What are Hybrid Indices?

‍

Hybrid Indices represent an evolution of the Crash/Boom Indices, building on the original concept by adding an extra layer of volatility to better reflect real market conditions.

‍

Crash/Boom Indices generally follow a predictable pattern: Crash Indices usually have small upward movements for several ticks before a steep drop, whereas Boom Indices exhibit minor downward movements before a sharp rise.

‍

Hybrid Indices advance this concept by adding volatility to the movements leading up to a crash or boom. This extra layer of unpredictability more closely mimics the erratic behaviour of real markets, creating additional trading opportunities.

‍

Explore the Hybrid Indices available for trading

‍

Six new Hybrid Indices are available, each offering an annualised volatility of 20%. These indices experience significant crashes or booms after a set number of ticks, as reflected in their names:

• Vol over Boom 400
  • Booms every 400 ticks
  • 20% Volatility

‍

• Vol over Boom 550
  • Booms every 550 ticks
  • 20% Volatility

‍

‍

• Vol over Boom 750
  • Booms every 750 ticks
  • 20% Volatility

‍

• Vol over Crash 400
  • Crashes every 400 ticks
  • 20% Volatility

‍

• Vol over Crash 550
  • Crashes every 550 ticks
  • 20% Volatility

‍

• Vol over Crash 750
  • Crashes every 750 ticks
  • 20% Volatility

‍

Lower synthetic volatility through Hybrid Indices trading

‍

It is important to note that the Hybrid Indices generally exhibit a lower annualised volatility than the Crash/Boom Indices. This is illustrated in the volatility comparison plot below. 

‍

‍

Start trading Hybrid Indices today

‍

Hybrid Indices are here to push the boundaries of synthetic trading, blending the old with the new to create a more realistic and potentially profitable trading environment. Open your free practice trading account and explore the Hybrid Indices on Deriv MT5 and cTrader, or learn more about how to trade Synthetics Indices with our free courses on Deriv Academy.