Trading Synthetic Indices on Deriv MT5


MetaTrader 5 (MT5) on Deriv is the most popular platform for trading synthetic indices with CFDs. This lesson walks you through everything from account setup to executing your first synthetic index trade.

Setting Up Your Deriv MT5 Account

Step 1: Create a Deriv Account

1. Visit Deriv.com and click "Create free demo account"
2. Enter your email and create a password
3. Verify your email address
4. Complete the profile questionnaire (required for regulation)

Step 2: Create a Synthetic Indices MT5 Account

1. Go to "Trader's Hub" in your Deriv dashboard
2. Under "CFDs", find the "Derived" section
3. Click "Get" next to the Derived account type
4. Set a password for your MT5 account
5. Note your login credentials (server, login ID, password)

Step 3: Download MT5

• Windows/Mac: Download from Deriv.com or MetaQuotes
• Android: Google Play Store — search "Deriv MT5"
• iOS: App Store — search "Deriv MT5"
• Web: trade.mql5.com or Deriv's web terminal

Step 4: Log In

1. Open MT5
2. File > Login to Trade Account
3. Enter your login ID and password
4. Select the correct server (provided during setup)

Finding Synthetic Indices in MT5

Market Watch:

1. Open Market Watch (Ctrl + M)
2. Right-click > Show All
3. Look for "Synthetic Indices" or "Derived" folder
4. Find sub-folders: Volatility Indices, Crash/Boom, Step, Range Break, Jump, Drift Switch

Adding to Chart:

1. Double-click any instrument in Market Watch to open a chart
2. Or drag the instrument onto the chart area
3. Set your preferred timeframe (M1, M5, M15, H1, etc.)

Understanding the Order Window

Market Execution:

• Symbol: The synthetic index you are trading
• Volume: Lot size (start with 0.01 for minimum risk)
• Stop Loss: Your maximum loss level (in price)
• Take Profit: Your target profit level (in price)
• Buy/Sell: Execute immediately at current price

Pending Orders:

• Buy Stop: Buy above current price (breakout)
• Sell Stop: Sell below current price (breakdown)
• Buy Limit: Buy below current price (pullback)
• Sell Limit: Sell above current price (pullback)

Lot Sizes and Margin

Common Lot Sizes:

Margin Requirement:

• Varies by instrument and leverage setting
• Deriv offers up to 1:1000 leverage on synthetics
• High leverage is dangerous — use it conservatively
• Check margin in the "Trade" tab at the bottom of MT5

Chart Setup for Synthetics

Recommended Indicators:

1. Moving Averages: 20 EMA and 50 EMA for trend direction
2. RSI (14): Overbought (70) and oversold (30) levels
3. Bollinger Bands (20, 2): Volatility and mean reversion
4. Volume indicator: Not applicable to synthetics (no real volume data)

Clean Chart Setup:

1. Right-click chart > Properties
2. Set background to dark (reduces eye strain)
3. Add horizontal lines at key support/resistance levels
4. Use templates to save your preferred setup

Placing Your First Trade

Example: Buying Volatility 75 Index

1. Open V75 chart on M5 timeframe
2. Add 20 EMA and 50 EMA
3. Wait for 20 EMA to cross above 50 EMA (bullish signal)
4. Wait for a pullback to the 20 EMA
5. Click "New Order" (F9)
6. Set volume to 0.01
7. Set stop loss 50 points below entry
8. Set take profit 100 points above entry (2:1 reward/risk)
9. Click "Buy"

After Entry:

• Monitor the trade in the "Trade" tab
• You can modify stop loss and take profit by right-clicking the trade
• Close the trade manually or let it hit TP/SL

Essential MT5 Tips for Synthetics

1. Enable one-click trading for fast execution (Tools > Options > Trading)
2. Use chart templates so you do not have to set up indicators every time
3. Set alerts at key price levels instead of watching the chart constantly
4. Use the Strategy Tester to backtest strategies on synthetic indices
5. Keep a journal — use MT5's built-in reporting to track performance

Key Takeaways

• Deriv MT5 is the primary platform for synthetic index CFD trading
• Start with a demo account and 0.01 lot sizes
• Always set stop loss and take profit before entering a trade
• Use simple technical indicators — moving averages and RSI work well on synthetics
• Save your chart templates for consistency across sessions