Learn How To Trade Synthetic Indices From Scratch (Complete Beginner’s Guide)

If you’ve been searching for a simple, practical, and complete guide to Learn How To Trade Synthetic Indices From Scratch, this is the only article you need. Synthetic indices have helped thousands of traders build income and financial freedom because they’re available 24/7, unaffected by global news, and perfect for small accounts.

If you’ve ever wished to start trading but didn’t know where to begin, this is your full roadmap.
If you’re starting with $50, this guide will show you how to build skill, create a plan, and scale step-by-step — even up to $100,000 in one year with consistency and smart compounding.

Scan this image to begin your trading journey:

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What Are Synthetic Indices?

To Learn How To Trade Synthetic Indices From Scratch, you must first understand what they are.

Synthetic indices are simulated financial markets created by Deriv. They mirror the behavior of real markets—trend movements, volatility, breakouts—but without the influence of:

  • Economic news
  • Political events
  • Global uncertainty

This makes them perfect for beginners who want a clean, structured market to learn in.

Popular indices include:

  • Volatility 10, 25, 50, 75, 100
  • Boom & Crash
  • Step Index
  • Range Break 100 & 200
  • Jump Index

Learning how each behaves is the first step to becoming a confident trader.

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Why Beginners Love Synthetic Indices

Beginners choose synthetic indices because:

They operate 24/7

Trade anytime — morning, night, or weekends.

No unpredictable news events

This makes technical analysis more reliable.

Perfect for growing small accounts

You can begin with $10–$50.

 Clear volatility patterns

Once you understand the structure, consistency becomes possible.

Most synthetic markets follow clear behavior such as:

  • Trend continuation
  • Trend exhaustion
  • Support and resistance breaks
  • Volatility bursts

This makes it easier for new traders to develop edge-based systems.

How To Open a Deriv Account (Step-by-Step)

  • Step1: Click here to create your free Deriv account
  • Step 2: Use your email address and complete verification.
  • Step 3: Create your real account (Financial).
  • Step 4: Set your country and identity details.
  • Step 5: Complete KYC (ID + proof of address).
  • Step 6: Log in and switch to Deriv Trader or Deriv MT5 (DMT5).

Account setup takes less than 5 minutes.

How To Start With Demo Trading

Before risking real funds, you must practice on demo.

What to Learn on Demo:

  • Opening & closing trades
  • Best Lot size for each pair
  • Stop-loss and take-profit
  • Trend identification
  • Market structure (break of structure, pullbacks, retests)

If you skip demo practice, you skip the foundation needed to Learn How To Trade Synthetic Indices From Scratch properly.

The Best Beginner Strategies for Synthetic Indices

Here are the simplest and most effective strategies to start with.

A. Break & Retest Strategy (Works on V75, V100, Range Break)

Timeframes: 1M, 5M, 15M

Rules:

  • Identify clear support or resistance
  • Wait for a strong breakout
  • Wait for a retest back to the zone
  • Enter on confirmation candle
  • Set SL behind the zone
  • Target 2× your stop loss

Why it works:
Synthetic markets respect zones with high precision.

B. Trendline Bounce Strategy (Boom & Crash)

Timeframes: 5M, 15M, 1H

Rules:

  • Draw a clean trendline from major swing points
  • Wait for price to touch trendline
  • Look for reversal candlestick (pin bar, engulfing)
  • Enter with small lot size
  • Take profit at the previous high/low

Perfect for traders who love simple trend setups.

C. 3-Candle Pattern Strategy (All Volatility Indices)

Rules:

  • Spot a strong impulsive candle
  • Wait for two minor pullback candles
  • Enter in direction of impulse after the second pullback
  • SL below pullback structure

This strategy works because synthetic indices move in clear impulse–correction cycles.

Risk Management for Small Accounts

If you want to grow a small account, you MUST respect these rules:

Risk 1–2% per trade

On a $50 account, risk only $0.50–$1 per trade.

Avoid over-trading

2–5 quality trades per day is enough.

Use stop loss always

The biggest account destroyer is “Let me wait… it may reverse.”

Take profits consistently

Growing small accounts is about discipline, small profit are better than loses.

How To Deposit & Withdraw Safely on Deriv

Deriv offers smooth deposits and withdrawals:

Deposit Methods

  • bank wire, credit card, and e-wallet
  • cryptocurrencies
  • Local Payment Agents (fastest)

Withdrawal Methods

  • bank wire, credit card, and e-wallet
  • cryptocurrencies
  • Local Payment Agents (fastest)

The $50 to $100,000 One-Year Growth Plan

Follow this plan with strict discipline, and the growth will shock you.

Phase 1: Skill Building (Week 1–4)

  • Goal: No profit target — only skill
  • Trade demo only
  • Journal every trade
  • Master one strategy
  • Understand lot sizes and SL placement
  • Focus on analysis, not money

Phase 2: Small Capital Practice (Month 2)

Start with $50
Goal: Grow to $150–$200

Rules:

  • 1% risk per trade
  • 10–20 pips/$ per trade
  • Avoid revenge trading
  • Stop after 2 wins or 1 loss per day

Phase 3: Steady Compounding (Month 3–6)

Goal: $200 → $2,500

Compounding Schedule:

  • 5% weekly target
  • Don’t increase lot size aggressively
  • Stick to only one or two markets
  • Withdraw 20% profit monthly for safety

At this stage, consistency becomes your superpower.

Phase 4: Aggressive Scaling (Month 6–12)

Goal: $2,500 → $100,000

Now you can:

  • Increase position size gradually
  • Trade high-accuracy setups
  • Continue monthly withdrawals

With discipline and controlled compounding, it is absolutely possible.

Tools & Resources You Need

Final Thoughts

Learning how to trade synthetic indices from scratch is not difficult — it just requires structure, discipline, and the right environment.
When you start with a plan, follow it with consistency, and avoid emotional trading, you will grow faster than you imagine.

Risk Disclaimer

Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please make sure that you understand the following risks before trading Deriv products: a) you may lose some or all of the money you invest in the trade, b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose.

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