Volatility Indices on Deriv: Complete Traders Guide (2025) 💹

Introduction: How Volatility Indices Changed My Trading Life

When I transitioned from trading binary options to synthetic indices, Deriv only had a handful of volatility indices—and even then, they felt like a whole new world.

What pulled me in immediately was how fast they moved—especially Volatility 75. I had never seen an asset where your account could grow that quickly in such a short space of time.

Unlike forex pairs that crawl or get stuck in tight ranges, V75 felt alive. It was volatile, aggressive, and rewarding if you timed it right.

Another big reason I switched? Volatility indices don’t sleep.
Coming from forex, I hated waiting the entire weekend for markets to open. That dead time killed momentum.

Then synthetics showed up—24/7 availability, zero news interference, and pure price action. For someone who liked to chart and trade at odd hours, this was a game changer.

That’s what started my obsession with volatility indices—and in this post, I’ll walk you through each one, how they work, how they’ve evolved, and how to choose what fits your trading style.

📊 What Are Volatility Indices on Deriv?

Volatility indices on Deriv.com are synthetic markets designed to mimic the behavior of real-world financial instruments—but with one major difference: their volatility levels are fixed and consistent.

Unlike forex pairs that slow down during certain sessions or on weekends, volatility indices offer round-the-clock action and are unaffected by economic news or political events. That’s because they’re powered by cryptographically secure random number generators, not global events.

In simple terms, volatility refers to how much price moves over a given time:

• High volatility = sharp, fast price movements
• Low volatility = slower, calmer markets

Deriv quantifies this volatility using a scale from 1 to 100, offering a unique range of synthetic indices with fixed volatility levels of:

• Volatility 10 Index (V10) – lowest volatility
• Volatility 25 Index (V25) – moderate movement
• Volatility 50 Index (V50) – higher swings
• Volatility 75 Index (V75) – aggressive, fast-moving
• Volatility 100 Index (V100) – the most explosive

For short-term traders and scalpers, there’s also a (1s) version of each index—like V75 (1s) or V100 (1s)—which updates every second for tighter entries and more opportunities per day.

👉 Deriv is the only broker offering synthetic indices with this kind of controlled volatility environment—making it ideal for both new and experienced traders.

📈 Types of Volatility Indices Offered by Deriv (2025 Update)

Deriv provides a diverse range of Volatility Indices, each simulating different levels of market volatility. These indices are categorized based on their volatility percentages and tick intervals.

Standard Volatility Indices

These indices update at a rate of one tick every two seconds:

• Volatility 10 Index (V10)
• Volatility 25 Index (V25)
• Volatility 50 Index (V50)
• Volatility 75 Index (V75)
• Volatility 100 Index (V100)

Deriv 1s Volatility Indices

These indices offer faster updates, with one tick every second, catering to traders seeking more dynamic market conditions:

⚡ 1s Volatility Indices (Fast-Tick)

1s Volatility Indices	1s Volatility Indices
Volatility 10 (1s) Index	Volatility 90 (1s) Index
Volatility 15 (1s) Index	Volatility 100 (1s) Index
Volatility 25 (1s) Index	Volatility 150 (1s) Index
Volatility 30 (1s) Index	Volatility 200 (1s) Index
Volatility 50 (1s) Index	Volatility 250 (1s) Index
Volatility 75 (1s) Index	Volatility 300 (1s) Index

Note: Availability of certain indices may vary based on platform updates and regional restrictions.

📝 How to Open a Volatility Indices Trading Account on Deriv

To trade any of the Volatility Indices listed above, you’ll need to open a Derived MT5 account inside your main Deriv profile. Here’s how to do it step by step:

✅ Step-by-Step Guide

1. Go to The Deriv SignUp page and sign up using your email or Google/Facebook login
2. Confirm your email and setup your account details and password
3. Once logged in, go to your Trader’s Hub
4. Under CFDs, click on the ‘Get’ button next to the Financial Account
5. Set your MT5 password (this will be different from your main Deriv password)
6. Your account will be ready instantly — you’ll also receive a login ID for MT5 in your email
7. You can also open a demo version of the account to practice first
8. To start trading, transfer funds from your main Deriv wallet to the Derived MT5 account

🧠 Tip: Use the demo account first to test out different Volatility Indices and get comfortable with their speed and movement.

👉 Need visual help with each step? Check out our full guide:
How to Open a Deriv Synthetic Account

🖥️ Ready to Start Trading Volatility Indices on MT5?

Now that you’ve set up your Deriv account, it’s time to learn how to actually place trades, choose the right chart, set lot sizes, and manage your risk.

Whether you’re on mobile or desktop, I’ve created a step-by-step walkthrough that shows you:

• How to log in to MT5
• How to add Volatility Indices to your chart
• How to place trades and set stop loss/take profit
• How to monitor, modify, and close trades
• The difference between PC and mobile setup

👉 Read: How to Trade Synthetic Indices on MT5 (Full Setup Guide)

This is the exact guide I wish I had when I was lost on my first day using MetaTrader.

📊 Which Volatility Indices Move the Most (and Least)?

Not all volatility indices are created equal. Some move fast with wild spikes (great for scalping), while others are calmer and more stable (ideal for low-risk strategies or beginners).

If you’re wondering:

• Which volatility index is the riskiest?
• Which ones are easier to manage with small capital?
• What’s best for scalping vs swing trading?

I broke it all down in these two guides:

👉 Most Volatile Synthetic Indices on Deriv
(Great if you want high-speed movement like V75, V300, etc.)

👉 Least Volatile Synthetic Indices on Deriv
(Best if you prefer a calmer, more controlled market like V10 or V25 (1s))

💡 Understanding the volatility level helps you choose the right strategy, lot size, and even time of day to trade.

📏 Choosing the Right Lot Size for Each Volatility Index

Once you understand which synthetic indices are fast-moving and which are more stable, the next step is knowing how much to risk per trade.

Lot size is everything.
Trade too big on a fast index like V75 or V300, and your account could vanish in seconds. Trade too small on a slower index, and you won’t grow.

That’s why I created this guide:

👉 Lot Sizes for Synthetic Indices: What to Use & Why

It covers:

• The safest lot sizes for V75, Boom 1000, V25 (1s), etc.
• How lot size affects your stop loss and drawdown
• Example setups using small accounts (like $10–$100)
• My personal formula for balancing aggression vs survival

🧠 If you’re blowing accounts or unsure why profits vanish fast, this is the section you need next.

⭐ What Is the Best Volatility Index to Trade on Deriv?

After trading synthetic indices since 2016, I’ve learned there’s no universal “best” index — it depends on where you are in your trading journey.

Some indices are fast and aggressive. Others are calmer and easier to manage. The key is knowing which one suits your current level.

Here’s a quick breakdown from experience:

If you’re…	Trade This Index	Why
🟢 Just starting out	V10 (1s) or V25 (1s)	Slow & stable
🟡 Intermediate trader	V50 or Boom 1000	Balanced volatility
🔴 Advanced or scalping	V75, V100, V300 (1s)	Fast, high reward/high risk

🧠 Pro Tip: I personally like V75 for its structure and momentum, but I don’t recommend it for new traders without a tested plan.

🧭 Still figuring out where to start?

I’ve put together a full beginner’s guide that walks you through the most stable, forgiving indices to learn with:

👉 Best Synthetic Indices for Beginners on Deriv

It includes:

• A ranked list of beginner-friendly indices
• Setup examples using small accounts
• Tips on what NOT to trade if you’re just getting started

📌 Key Considerations When Choosing a Volatility Index

Before locking in your favorite index, keep these four factors in mind — they’ll save you from blowing your account just because “everyone is trading V75”:

• 🧠 Risk Tolerance
  Higher-volatility indices like V75 and V100 can deliver big gains — but they also move violently. Only trade them if you’re okay with fast losses too.
  
• ⚡ Trading Style
  If you’re a scalper or day trader, you’ll want fast-moving markets like V300 (1s) or V75 (1s).
  If you swing trade or hold longer, V25 or V50 may suit you better.
  
• 📈 Market Conditions
  Some indices trend cleanly at certain times, while others chop sideways. Check the chart before diving in — don’t just trade out of habit.
  
• 🎓 Experience Level
  Beginners should stick to low-volatility indices like V10 (1s) or V25 (1s) until they build confidence and control.

✅ Pros and Cons of Trading Volatility Indices

Trading volatility indices can be powerful — but only if you understand what you’re getting into. They offer massive upside, but they also move fast and punish poor risk management.

Here’s what I’ve personally experienced since 2016:

💚 Pros (Why I Love Volatility Indices)

• 24/7 Market Access
  No waiting for Monday like in forex. You can trade weekends, late nights — whenever you’re ready.
• No News Spikes or Economic Events
  Since volatility indices are synthetic, they’re not influenced by politics or NFP surprises.
• High Volatility = High Opportunity
  You can flip small accounts fast if you’re disciplined — especially on V75 and V300 (1s).
• Clean Technical Structure
  Volatility indices tend to respect support/resistance and price action setups better than some choppy forex pairs.
• Perfect for Strategy Testing
  Because they move all day, you can test setups, refine entries, and build a strategy quickly.

⚠️ Cons (What to Watch Out For)

• Aggressive Movement Can Blow Accounts
  Especially if you use big lot sizes without a stop loss. V75 and V100 don’t forgive mistakes.
• Psychological Pressure
  The speed of price movements can make you panic, overtrade, or exit too early.
• Unique Behavior
  Each index has its own rhythm. What works on V10 might fail miserably on V300.
• Lot Size Confusion
  Unlike forex where 0.01 is standard, each synthetic index behaves differently in point value.
  👉 Learn more in our lot size guide

🧠 Bottom Line: Volatility indices are perfect for traders who want action, structure, and flexibility — but only if you respect the risks and treat it like a real business.

👉 Want the full breakdown with examples and long-term tips?
Check out this guide: Advantages and Disadvantages of Trading Synthetic Indices

🧾 Share Your Experience

Over the years, I’ve seen traders — myself included — go on very different journeys with volatility indices.

Some started with V25 (1s) because it felt safer…
Others dove straight into V75, got burned, then circled back to learn proper risk.
A few mastered V100 or Boom 1000 and stuck with them because they matched their style.

Personally, I started with V10, then moved to V75 — and while I still trade it today, I’ve learned to scale back and switch between indices based on conditions and account size.

There’s no one “best” volatility index — only the one that fits your personality, capital, and patience.

👉 Now I’d love to hear from you…

• What was your first synthetic index?
• Which one are you trading now?
• Did you blow your account before figuring it out?
• Which index do you trust the most — and why?

💬 Drop your experience in the comments below — your story could help someone else avoid costly mistakes.

Let’s build a community of smart, disciplined traders who grow together.

FAQ’s On Deriv Volatility Indices