Best Time to Trade Synthetic Indices on Deriv

After many years of closely monitoring the financial markets, we’ve developed a keen understanding of the best times to trade synthetic indices on Deriv.

Synthetic indices are some of the most profitable assets you can trade, largely because they are not affected by market news, which means, no unnecssary dusrupts from some unexpected news. But this does not mean that you do not have to choose the time you trade them carefully.

In this guide, we are going to discuss the best time time to trade synthetic indices, based on our many years of experience trading on the Deriv platform.

But our guide goes past the best times to trade Deriv synthetic indices. We’ve also discussed some of the best synthetic indices to trade on Deriv.

Best Time to Trade Synthetic Indices on Deriv

The beauty of trading synthetic indices on Deriv is that they are available for trading 24/7 and they are not affected by real-world events such as economic news that may negatively impact other forex assets. 

However, just because Deriv’s synthetic indices are available to trade 24/7 does not mean that all trading times are equal. 

Based on our many years experience trading sytnthetic indices on Deriv, we can confidently say that the best time to trade is when all other markets are active. This is the time we’ve observed synthetic indices to exhibit the most liquidity and volatility.

The forex market is most active during the London Session (10:00 AM to 8:00 PM EAT) and the New York Market Session (4:00 PM to 11:00 PM EAT). These are the times when the majority of traders are active in the market, leading to higher volatility and opportunities for profit.

In my opinion, the best time to trade Deriv Synthetic indices in Kenya is during the mid-morning hours, roughly between 9 AM and 12 PM. This is when the markets are most active and volatile. The increased volatiltiy provides you with a lot of opportunities to capitalize on price movements.

The market then tends to consolidate and become more range-bound between 12:00 PM and 3:00 PM. This is an ideal time to employ range-trading strategies that capitalize on price fluctuations within a defined range.

The late afternoon hours (between 3:00 PM and 6:00 PM EAT) often bring a resurgence of volatility, as traders react to news and events from the USA, which is one of the biggest trading hubs in the world.

In a nutshell, here’s a list of the best time to trade synthetic indices on Deriv:

1. London Session: During the London session, which coincides with the morning hours in Kenya (10:00 - 19:00 EAT), market activity tends to be at its peak. This is when major financial centers like London and Frankfurt are active. Higher liquidity and volatility during this time can result in favorable trading conditions.
2. New York Session: The U.S. session overlaps with the afternoon and evening hours in Kenya (16:00 - 01:00 EAT). This period sees increased market activity due to the presence of major American financial hubs such as New York. It’s a time when many synthetic indices traders actively enter the market, offering many opportunities to execute profitable trades.
3. Asian Session: The Asian session corresponds to the late evening and early morning hours in Kenya (03:00 AM - 12:00 EAT). Although it is generally considered a quieter session, it still some good opportunities to trade synthetic indices on Deriv, especially during the overlap with the European session.

Consider your personal schedule and availability when choosing the best time to trade synthetic indices on Deriv. Trading during hours that align with your focus and concentration can enhance your decision-making abilities.

Trading on Deriv During Other Times

In addition to the above, the best time to trade on Deriv will also depend on the type of asset you’re trading and your personal trading strategy.

• For binary options trading, periods of normal volatility are often the best times to trade. According to a survey of binary options traders, the best times of day to trade are between the hours of 6.00–12.00 GMT and 18.00–0.00 GMT.
• If you’re trading synthetic indices, such as the Volatility Index 75, the most important times are 11:00 and 23:00 GMT.
• For Forex trading, the best time typically occurs during the overlap of major financial markets sessions, such as the London and New York sessions.

For those who find it difficult to trade on weekdays due to busy schedules, Deriv also offers weekend trading. This can be a good time to perform in-depth technical or fundamental analysis for your trades.

Make sure you read this guide to the end. There’s so much more to the hours you choose to trade, including tips for trading on Deriv during the weekend.

Understanding Deriv’s Synthetic Indices

Before we zoom into the ‘when’, let’s chat about the ‘what’. 

Deriv’s synthetic indices are unique trading assets that mimic the behavior of real-world financial markets, and Deriv is the only broker in the world to provide trading in these indices.

These indices are simulated markets, created by algorithms, and they mimic the thrill of real-world financial markets. The catch? They operate 24/7, and they’re immune to real-world events. No need to sweat over economic reports or political upheavals.

One of the most distinct advantages of Deriv’s synthetic indices is that they are available for trading 24 hours a day, 7 days a week. This means you can trade these indices anytime you want, without any restrictions. Whether you’re an early bird who likes to trade in the morning, a night owl who prefers trading at night, or someone who has some free time over the weekend, Deriv has got you covered.

You can trade synthetic indices on various Deriv platforms including Deriv MT5, Deriv X (with CFDs), DTrader (with options and multipliers), DBot (with options), and Deriv GO (with multipliers). This gives you the flexibility to choose the platform that best suits your trading style and preferences.

Now, let’s dive into the fascinating universe of these indices and uncover the best times to trade them. Spoiler alert: It’s more intriguing than you might think!

1. Crash and Boom Indices: First up, we have the Crash 1000 and Boom 1000 indices. Crash and Boom simulate a market that spikes or crashes 1000 points in under a tick. They are ideal for short-term trades. The best time to trade these? Look for periods of low volatility in other markets. This often indicates a higher chance of spikes in Crash and Boom.
2. The Step Index: The Step Index is another gem. It’s like a staircase with each step representing a price move. This one is perfect for traders who like a steady, predictable pattern. The magic time to trade Step Index on Deriv? 24/7, baby! Since it’s not influenced by real-world events, you can step in at any time.
3. Range Break Indices: Break 100 and Range Break 200 are for those who love a good breakout strategy. These indices move within a range before breaking out. Now, here’s the secret sauce – trade when other major markets are asleep. Less noise from the world equals clearer signals in Range Break.
4. Volatility Indices: And then we have the Volatility Indices (10, 25, 50, 75, 100). These are the wild children of the synthetic world. They’re unpredictable, fast-moving, and can be traded 24/7. The best time? During your peak mental alertness. Yes, your brainpower is your best tool here!
5. The High-Frequency Indices: Last but not least, the High-Frequency Indices (HF 10, HF 50, HF 100). These are for the speed demons among us, changing every tick. The optimal time to trade is when you’re ready for rapid decision-making and can handle the heat of quick changes.

Best Time To Trade Synthetic Indices on Deriv

Now, here’s where I drop the golden nuggets of wisdom. After extensive research and interviewing a dozen professional traders on Deriv, I’ve unearthed some surprising insights about the best time to trade synthetic indices on Deriv.

• The Non-Stop Trading: Unlike Forex markets, synthetic indices don’t sleep. They’re up and running 24/7, which means you have the liberty to trade whenever you want. But here’s the kicker – just because you can trade at any time, doesn’t mean you should.
• Understanding Your Index: Each synthetic index on Deriv has its unique personality. Take ‘Volatility Index 75’, for instance. It’s like the wild horse of the synthetic world - unpredictable, but with potentially high rewards. Knowing the behavior of your chosen index is key. Some thrive in the quiet hours, while others buzz during peak times.
• Peak Performance Times: Generally, the best time to trade is when you’re at your peak mental performance. For many, this is during daylight hours when the brain is alert and decision-making is sharp. However, if you’re a night owl, the calm of the late hours might be your golden time.
• Crowd Psychology: Yes, these markets are algorithmically generated, but they’re traded by humans. Understanding crowd psychology is crucial. The busiest hours often lead to increased volatility. More traders jostling in the market can mean more opportunities – or more competition.
• Your Time Zone Matters: If you’re in New York and trading during your lunch break, someone in Tokyo might be trading over dinner. Your ‘peak time’ is relative. Align your trading hours with your lifestyle and mental alertness.
• Your Trading Strategy: Here’s where it gets really personal. Your trading strategy dictates your ideal trading time. Are you a scalper, thriving on small, frequent trades? Then the busiest hours are your playground. Or maybe you’re a swing trader, looking for more significant shifts over a few days? Then the start of market sessions or major news releases could be your golden ticket.

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It’s Not Just About Timing

While timing is crucial, it’s not the only factor. Your success in trading synthetic indices on Deriv also hinges on:

• Understanding Risk Management: With great volatility comes great responsibility. Setting stop-loss orders and having a clear risk management strategy is vital.
• Continuous Learning: The synthetic market is a different beast. Keep educating yourself about its nuances.
• Choosing the Right Index: Each synthetic index has its personality. From Volatility Indices to Jump Indices, pick the one that aligns with your trading style and risk tolerance.

Also Read: Is Deriv Legit in Kenya?

The Magic of the Forex Market Hours

First off, let’s remember that the forex market is the bustling Times Square of the financial world – it never sleeps!

But here’s the catch: not all hours are created equal.

On Deriv, as with any other forex trading platform, your success can hinge on trading when the market is most active. Why? Because more activity means more opportunities, and who doesn’t love more opportunities?

The four major forex exchanges are

1. Sydney
2. Tokyo
3. London, and
4. New York

You must be aware of these time zones:

• Sydney Session: Opens at 10 PM Kenyan time.
• Tokyo Session: Starts at midnight Kenyan time.
• London Session: Begins at 9 AM Kenyan time.
• New York Session: Opens at 2 PM Kenyan time.

The Best Times to Trade

1. Overlap Hours: The most volatility happens when markets overlap. For Kenyans, the London-New York overlap (2 PM to 6 PM) is a prime time for significant movements.
2. Economic News Release: Keep an eye on major economic news from the U.S., Europe, and Asia. Trading just before or after these releases can be lucrative but risky.
3. Early Hours of the London Session: Starting at 9 AM, Kenyan traders can capitalize on fresh European market moves.

As a Kenyan trader, you’re uniquely positioned in the East Africa Time Zone (EAT), which is 3 hours ahead of Greenwich Mean Time (GMT+3). This time zone alignment places you at a strategic advantage to leverage the overlaps of the London and New York sessions, which typically see a surge in trading activity.

When is the Best Time to Trade on Deriv in Kenya?

The best time to trade on Deriv, particularly for forex markets, is when there is a high level of market activity and volatility. This typically occurs during the overlap of the major trading sessions, such as the London and New York sessions. The optimal trading hours for Kenyan traders would be from 11:00 to 17:00 East Africa Time (EAT).

During these hours, both the London session (which opens at 11:00 EAT) and the New York session (which closes at 24:00 EAT) are active, providing higher liquidity and potentially more trading opportunities due to increased volatility. This is particularly true for popular currency pairs like EUR/USD, which see a lot of trade activity during the overlap of these sessions. 

For those who cannot trade during weekdays or prefer to trade during quieter periods, Deriv also offers the opportunity to trade synthetic indices and cryptocurrencies over the weekend. These markets are not affected by the traditional market hours and can provide flexibility for traders with busy schedules.

What Time Zone Does Deriv Use?

Deriv operates on the GMT (Greenwich Mean Time) time zone.

This choice is strategic, considering GMT is the world’s standard time – often referred to as UTC+0. This universal benchmark facilitates a smoother coordination of trading activities across different geographical locations, ensuring that traders worldwide, including those from Kenya, can synchronize their activities with international market hours.

For traders in Kenya, this means adapting to a time zone that is typically 3 hours ahead of GMT, considering Kenya operates on East Africa Time (EAT), which is GMT+3.

For MetaTrader platforms like MT5, which Deriv also offers, the server time is fixed to GMT+2 (and GMT+3 during Daylight Saving Time in New York). This is to align with the market closing time in the New York market, providing a standardized reference point for traders globally.

Tips for Navigating the GMT Time Zone as a Kenyan Trader

• Convert Time Zones: Use online tools or time zone converters to translate GMT to EAT for your trading schedule. This will help you keep track of market openings and important economic announcements in local time.
• Set Alerts: Most trading platforms allow you to set alerts for specific times. Configure these alerts according to the GMT zone to never miss critical market movements.
• Plan Ahead: Use the time difference to your advantage by planning your trading activities around major market openings and closings. This might mean adjusting your trading hours to early mornings or late evenings in EAT to align with markets in the GMT zone.

Does Deriv Trade on Weekends?

Absolutely, you can trade on weekends with Deriv! This might come as a surprise because there’s a common belief that trading activities pause during the weekend when most financial markets are closed. 

However, Deriv offers you the opportunity to continue trading even on Saturdays and Sundays, which is great news for you if you’re looking to make the most of your time.

How to Trade on Deriv During the Weekend

• Synthetic Indices: These are available for trading on various Deriv platforms like Deriv MT5, Deriv X, and Deriv Bot. They offer the advantage of trading without the usual restrictions of traditional indices tied to stock exchanges.
• Cryptocurrencies: As with synthetic indices, you can trade cryptocurrencies any time, including weekends and holidays, on Deriv’s platforms

For Kenyan traders, this opens a realm of possibilities. The cryptocurrency market, for instance, operates 24/7, providing a lucrative avenue for those willing to dive into the complexities and volatilities of cryptocurrencies like Bitcoin, Ethereum, and others. 

Deriv’s support team is also available 24/7, even on weekends, so if you need assistance or have questions, they’re ready to help.

The best time to trade on Deriv, particularly for forex markets, is when there is a high level of market activity and volatility. This typically occurs during the overlap of the major trading sessions, such as the London and New York sessions. The optimal trading hours for Kenyan traders would be from 11:00 to 17:00 East Africa Time (EAT).

During these hours, both the London session (which opens at 11:00 EAT) and the New York session (which closes at 24:00 EAT) are active, providing higher liquidity and potentially more trading opportunities due to increased volatility. This is particularly true for popular currency pairs like EUR/USD, which see a lot of trade activity during the overlap of these sessions. 

For those who cannot trade during weekdays or prefer to trade during quieter periods, Deriv also offers the opportunity to trade synthetic indices and cryptocurrencies over the weekend. These markets are not affected by the traditional market hours and can provide flexibility for traders with busy schedules.

Deriv operates on the GMT (Greenwich Mean Time) time zone.

This choice is strategic, considering GMT is the world’s standard time - often referred to as UTC+0. This universal benchmark facilitates a smoother coordination of trading activities across different geographical locations, ensuring that traders worldwide, including those from Kenya, can synchronize their activities with international market hours.

For traders in Kenya, this means adapting to a time zone that is typically 3 hours ahead of GMT, considering Kenya operates on East Africa Time (EAT), which is GMT+3.

For MetaTrader platforms like MT5, which Deriv also offers, the server time is fixed to GMT+2 (and GMT+3 during Daylight Saving Time in New York). This is to align with the market closing time in the New York market, providing a standardized reference point for traders globally.

Tips for Navigating the GMT Time Zone as a Kenyan Trader

• Convert Time Zones: Use online tools or time zone converters to translate GMT to EAT for your trading schedule. This will help you keep track of market openings and important economic announcements in local time.
• Set Alerts: Most trading platforms allow you to set alerts for specific times. Configure these alerts according to the GMT zone to never miss critical market movements.
• Plan Ahead: Use the time difference to your advantage by planning your trading activities around major market openings and closings. This might mean adjusting your trading hours to early mornings or late evenings in EAT to align with markets in the GMT zone.

Absolutely, you can trade on weekends with Deriv! This might come as a surprise because there’s a common belief that trading activities pause during the weekend when most financial markets are closed. 

However, Deriv offers you the opportunity to continue trading even on Saturdays and Sundays, which is great news for you if you’re looking to make the most of your time.

How to Trade on Deriv During the Weekend

• Synthetic Indices: These are available for trading on various Deriv platforms like Deriv MT5, Deriv X, and Deriv Bot. They offer the advantage of trading without the usual restrictions of traditional indices tied to stock exchanges.
• Cryptocurrencies: As with synthetic indices, you can trade cryptocurrencies any time, including weekends and holidays, on Deriv’s platforms

For Kenyan traders, this opens a realm of possibilities. The cryptocurrency market, for instance, operates 24/7, providing a lucrative avenue for those willing to dive into the complexities and volatilities of cryptocurrencies like Bitcoin, Ethereum, and others. 

Deriv’s support team is also available 24/7, even on weekends, so if you need assistance or have questions, they’re ready to help.