Volatility Indices Explained, Including the 1-Second Versions
Volatility Indices are simulated markets with a constant level of volatility. They do not depend on real-world news, and they trade around the clock.
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What they are
Deriv describes Volatility Indices as synthetic instruments that generate continuous price movement at fixed volatility levels, independent of real-world markets, news or economic events. Their prices come from an algorithmic random process, so each individual price change is random while the overall behaviour stays statistically consistent.
They are part of Deriv's synthetic indices, which are available to trade 24/7, including weekends and public holidays, with no market closures.
What the number means
The number in the name is the volatility level. Higher numbers mean faster and larger price movements, and lower numbers mean smaller moves and slower trends. Deriv's glossary lists constant volatility from 10% to 300%.
| Level | In Deriv's guidance |
|---|---|
| 10 and 25 | Smaller candles and slower trends. Described as suiting beginners and conservative strategies. |
| 50 and 75 | A middle range of movement. |
| 100, 150 and 250 | Faster swings and wider price ranges. Described as suiting experienced traders. |
Volatility levels mentioned in Deriv's guides. Availability of each level and tick speed can vary. Check the watchlist in the app.
What "(1s)" means
Indices marked (1s) generate one tick per second. Other Volatility Indices tick more slowly, commonly every two seconds. A 1-second index has faster updates and smoother movement, while a 2-second index has larger price steps. Indices with the same volatility level but different tick speeds are generated independently and do not move together.
In the app's watchlist they appear in separate groups, Volatility and Volatility (1s). The Digit analysis view for Volatility 100 (1s) shows a tick rate of about 1.0 ticks per second.
Other synthetic and basket indices on Deriv
Volatility Indices are one part of a wider group. Deriv's Trader markets page also lists:
- Jump Indices, such as Jump 10 and Jump 25, which add sudden jumps to the price.
- Daily Reset Indices (Bear Market and Bull Market).
- Basket indices: a Forex Basket (AUD, EUR, GBP and USD) and a Commodities Basket (Gold Basket).
- Boom and Crash, covered in their own guide.
Check the app's watchlist for the instruments available to you.
What it means for a bot
- Because they are always open, a bot can trade them at any time. Digits contracts are available on them, and the app's examples use Volatility 100 (1s).
- Their prices are random by design. Past moves do not predict the next one, and no staking strategy creates an edge.
- Faster indices produce more trades in less time, so risk limits matter more.
- They are simulated, not real markets. Results on them say nothing about forex, stocks or crypto.
Practise on a Deriv demo account before you use real money.
Get StartedFrequently asked questions
- What does Volatility 100 (1s) mean?
- A Volatility Index with a volatility level of 100 that generates one tick per second.
- Are Volatility Indices open on weekends?
- Yes. Deriv says synthetic indices trade 24/7, including weekends and public holidays.
- Are Volatility Indices affected by news?
- No. Deriv describes them as independent of real-world markets, news and economic events.
Keep reading
- Boom and CrashBoom and Crash indices drift slowly in one direction and then spike sharply the other way at random moments. The number in the name tells you how often, on average.
- Digits contracts comparedAll three Digits contracts predict the last digit of the final tick. They differ in how many digits win, and that sets how likely each one is to win.
- Multichart and watchlistThe watchlist shows live prices for every instrument. The multichart view lets you follow several markets side by side. Together they help you choose what to trade.
Sources
Risk warning: Trading binary options involves a high level of risk and you could lose your entire stake. Only trade with money you can afford to lose. This page is educational and is not financial advice.