What is a Volatility Index? The Beginner’s Guide to Synthetic Indices
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If you've spent any time in South African trading communities, you've heard about the Volatility 75 Index (V75). But what exactly is it, how does it work, and why are thousands of SA traders choosing synthetic indices over traditional forex?
This guide covers everything you need to know.
What Are Synthetic Indices?
Synthetic indices are simulated financial instruments created by Deriv (formerly Binary.com). Unlike forex pairs or commodities, they are not tied to any real-world market — they're generated by a certified random number generator (RNG) that produces price movements mimicking real market volatility.
Key characteristics:
- Available 24/7/365 — no market open/close times
- Not affected by news events — NFP, CPI, FOMC have zero impact
- Consistent volatility — each index has a fixed volatility level
- Available exclusively on Deriv — you need a Deriv MT5 account to trade them
The Most Popular Synthetic Indices
| Index | Volatility level | Tick speed | Best for |
|---|---|---|---|
| Volatility 10 (V10) | Low | Slow | Conservative traders |
| Volatility 25 (V25) | Medium-low | Medium | Beginners |
| Volatility 50 (V50) | Medium | Medium | Intermediate traders |
| Volatility 75 (V75) | High | Fast | Experienced traders |
| Volatility 100 (V100) | Very high | Very fast | Advanced traders |
| Boom & Crash 500/1000 | Spike-based | Variable | Spike traders |
Why is V75 So Popular in South Africa?
- Accessible via Deriv — Deriv is widely available and trusted in SA
- Low minimum deposit — start trading V75 from as little as R500
- No broker manipulation — RNG-generated prices, fully audited
- 24/7 availability — trade at any time, including weekends
- No news risk — economic events don't affect synthetic indices
- Perfect for automation — consistent volatility makes it ideal for EAs
Can You Automate V75 Trading?
Absolutely — and this is where EAs shine on synthetic indices. Because V75 has consistent, predictable volatility patterns (unlike forex which can spike unpredictably on news), EAs can exploit these patterns reliably 24/7.
The VigoRL V75 EA was built exclusively for this instrument — designed to trade the Volatility 75 Index on Deriv MT5 around the clock, capturing consistent profits from its unique price behaviour.
How to Start Trading V75
- Create a Deriv account at deriv.com
- Open a Deriv MT5 account — choose "Synthetic" account type
- Deposit funds — minimum ~R500
- Download MetaTrader 5 from your broker
- Install your EA — follow our MT5 EA installation guide
- Attach the EA to the V75 chart and enable AutoTrading
The Bottom Line
Synthetic indices — especially V75 — represent one of the cleanest trading environments available to retail traders. No news risk, no manipulation, 24/7 availability, and consistent volatility make them ideal for automated EA trading.
If you're a South African trader looking to automate your V75 trading, the VigoRL V75 EA is built specifically for this instrument and available now on PMotive with instant delivery and a 14-day money-back guarantee.
