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Deriv is a Boom and Crash Index broker, as it offers Crash and Boom Indices on its Deriv Trader, Deriv GO, Deriv EZ, MT5, and cTrader platforms. Crash and Boom Indices are Synthetic Indices that simulate markets; they are not real markets and are based on a proprietary algorithm. As these indices are synthetic, they may be traded 24/7.

This review will break down the wide range of platforms offering Boom and Crash Indices and their specific features. One key piece of account information is that the minimum deposit to open a live account is $5. The trader may start on a demo account and try out the platforms and these Indices.

From the Trader's Hub, the trader can create accounts for MT5, cTrader, each of which offers leveraged trading of Crash and Boom Indices. Deriv GO is available as an app download (and can be found in the Trader's Hub). Deriv Sign-Up

MT5 is the successor platform to MT4 with a range of advanced features. cTrader is a relatively user-friendly platform with a wide range of features. Deriv EZ is integrated into the Deriv GO app but requires a separate account, which can be created from the Deriv GO app. On Deriv Trader and Deriv GO, Crash and Boom Indices may be traded as Multipliers or Accumulators. Feature availability and specifications can vary depending on the trader's region.

What are Crash/Boom Indices

Crash and Boom Indices are Synthetic Indices that simulate a type of volatile market condition which may be seen, for example, at trend ends in real trading markets. A Crash Index is the directional opposite of a Boom Index. A Crash Index simulates volatile drops downwards, while a Boom Index simulates volatile, spiked rises. However, they come with different frequencies of spikes or drops.

What are Boom Indices ?

Boom Indices can spike upwards on average every 150, 300, 500, 600, 900, or 1000 ticks (a tick is the shortest time frame for a change in value).

Taking an example from Deriv Trader, the market is selected from the top left-hand box. When the Index is selected, it appears on the chart. The chart has a range of time frames from tick to day, and Area, Candle, Hollow, and OHLC charts. Looking at the chart from various time frames, the trader can see that patterns appear. So the market is not necessarily going up at a given time, even though it spikes up the specified number of ticks on average. This is a feature of Synthetic Indices in general: though they focus on a type of trading pattern, they still exhibit the features that can make trading hard, as they are designed to simulate a trading market.

What are Crash Indices ?

Crash Indices can spike down or dip every 150, 300, 500, 600, 900, or 1000 ticks on average.

Which platform to choose ?

Crash and Boom Indices are available on MetaTrader 5 (MT5), cTrader, Deriv Trader, Deriv Bot, Deriv GO, and Deriv EZ. Each platform is offered as part of the Deriv suite of online trading platforms. As Deriv GO (and Deriv EZ) is a mobile app, it can be downloaded separately. The trader can use their Deriv account to log into Deriv Go when it is downloaded from the app store for their phone.

To trade these indices on MT5, the trader creates an MT5 account from the Trader's Hub on Deriv. The trader can then download desktop MT5 or use an MT5 web trader from Deriv or trade on MT5's mobile app. To trade on cTrader, the trader creates a cTrader account and can download the desktop platform. To trade on Deriv GO, the trader downloads the app from the app store for their phone. To trade on Deriv EZ, the trader can create an account from Deriv GO.

MT5 may take some practice in getting familiar with, while Deriv Trader aims to be intuitive and user-friendly. cTrader provides a similar set of these indices in a feature-filled trading platform. Deriv GO offers a simplified, intuitive way to trade these Indices using Multipliers or Accumulators, and Deriv EZ allows the trader to trade leveraged CFDs on Synthetic Indices (and other markets) from within Deriv GO.

Thus, a major difference is that on Deriv Trader and Deriv GO, Crash and Boom Indices are offered as Multipliers and Accumulators, while on MT5, cTrader, and Deriv EZ, they are available with leveraged trading (up to 1000:1). Deriv Sign-Up

Trading Boom and Crash Indices as Multipliers

Trading Boom and Crash Indices as Multipliers is offered on Deriv Trader and Deriv GO. To give an example of trading a Multiplier on Deriv Trader, the trader chooses a stake from the tab on the right of the platform, which is the total amount that can be lost in the trade. They then choose a multiplier. The multiplier may be chosen from ranges that can vary depending on the chosen market.

The multiplier can increase gains or losses. The gross gain or loss of a trade is the percentage change in the value of a market from the beginning to the end of the trade times the stake and the multiplier. These trades are open-ended until ended by a stop-out (when the potential loss equals the entire stake), by a stop loss, by the trader or by a take-profit level.

Loss is limited to the stake (by the stop-out); gains are not limited; however, given that the market tends to retrace and move in complex patterns, the market may effectively tend to limit possible gains.

Trading Crash/Boom indices as Accumulators

On Deriv DTrader and Deriv GO, the trader can trade these indices using Accumulators. Accumulators work to compound growth in the stake as time passes, with the risk of losing the stake if the value of the index does not stay within price level barriers.

cTrader

cTrader is an online trading platform that integrates features such as automated trading. cTrader is known for markets like Forex; however, Deriv cTrader does provide 24/7 trading of Synthetic Indices in the shape of Volatility Indices and Crash/Boom Indices, in addition to a wide range of other markets. cTrader in fact, has its own selection of these Indices. A cTrader account may be created from the Trader's Hub on the Deriv platform.

Is there a commission charge for the trade ?

There is a commission charge for each trade on Deriv Trader and Deriv GO which is based on the stake size and the Multiplier.

Trading Crash and Boom Indices on MT5

These Indices can be traded on MetaTrader 5. MT5 is the successor to MT4 and features a number of enhancements on this platform. The trader can trade them from the chart and use leverage up to 1000:1. Leveraged trading does not have a stake, so loss is not limited.

What strategies can be used to trade Boom and Crash Indices ?

Spikes occur in other markets, up and down; the difference is that spikes occur with these indices at regularized intervals. This does not necessarily make them any easier to trade. The trader may be tempted to scalp Boom and Crash Indices; this is a possibility, but the extent of the spike and what happens before the spike is not known, for example. That is, the patterns can still be complex. Deriv offers demo accounts, and the trader can try trading on demo accounts before risking real money. There is a range of technical indicators available from the chart, and the trader can see how effective these might be with these simulated markets.

Other Synthetic Indices

On MT5, cTrader, Deriv Trader, and Deriv GO, there is also a wide range of other Synthetic Indices.

What are the minimum and maximum order size ?

The minimum volume size for Crash and Boom indices on MT5 is 0.05, and the maximum volume size is up to 50, depending on the market. On Deriv Trader and Deriv GO, the minimum stake size is $1 and the maximum stake is $2000 ($1000 for Accumulators). The leverage available on MT5 and cTrader and the small stake size on Deriv Trader and Deriv GO mean that it is possible to trade with a smaller account size, as well as a larger one.

What is the minimum deposit ?

The minimum deposit varies depending on the payment method used. The minimum is $5, but some payment methods may have larger minimums. However, there is no minimum deposit to transfer to the MT5 or cTrader.

Comparative analysis of Crash/Boom Indices at Deriv

Deriv offers a wide range of Synthetic Indices. This means that the trader can try simulations of different types of trading markets. For example, the Volatility Indices simulate different levels of volatility and update at different speeds. The Drift Switching Indices simulate market action around trends. The DEX Indices simulate volatile market conditions around news events. The Crash/Boom indices themselves simulate a type of volatile upward or downward market, with spikes or drops.

All these conditions can be seen in real markets, but in real markets, they are not constrained to one type of major pattern and are unpredictable. That is, volatile markets can become much more or less volatile. Ranges can become trends. Sharp drops can become smoother moves.

So considerable effort is taken when trading real markets to try and isolate what market conditions are happening or likely to happen, using some kind of analysis. For example, using an indicator to suggest volatility levels. But Synthetic Indices, which focus on a particular pattern, will still show patterns that are unpredictable and make for difficult trading. However, for all trading, some analysis is much better than no analysis.

Deriv offers more than Synthetics; it also provides CFDs based on real markets, so the trader can also trade these markets and see how they compare with trading Synthetic Indices. For those who want to trade Synthetic Indices, Deriv has been offering them for years and continues to expand the markets available, with increases in the types of each simulation market and in the introduction of new types of simulations.

The offering of trading platforms is wide for any broker, and it may be that the trader might prefer trading Synthetics on a particular platform, but at Deriv, they can try all of them if they wish. A core takeaway for the trader is that trading is hard; it's an adversarial market, and simulating this does not make it go away. But at Deriv, the trader can try a wide range of market simulations of many different trading platform, including both MT5 and cTrader, each offering a wide range of analysis tools.

Account funding

Payment methods include Neteller, Skrill, Debit and Credit Cards, and e-Wallets, and in some regions, crypto-denominated accounts may be available.

Why trade Crash and Boom at Deriv ?

Deriv offers a distinctive combination of online trading platforms in an intuitive package. The trader can trade with small order sizes or larger ones and can deposit relatively small amounts or larger ones as they wish. Deriv Trader offers a user-friendly platform to trade Crash and Boom Indices 24/7 using Multipliers, which amplify the effect of changes in the value of these indices, and Accumulators, which aim to provide compounding growth in the stake, both with the risk of loss of the stake. Deriv GO provides an intuitive platform for mobile trading of Crash and Boom Indices using Multipliers or Accumulators. Alternatively, the trader can trade these indices 24/7 on the MT5 platform, on cTrader, and on mobile Deriv EZ, using leverage up to 1000:1.