Boom and Crash Indices
Boom and Crash are the most talked-about synthetic indices after V75 — and the most misunderstood. They spend most of their time drifting one way in tiny steps, then fire a sudden, violent "spike" the other way. Understanding which direction spikes, and why the spike is a trap as often as an opportunity, is the whole game. Here is how Boom 300/500/1000 and Crash 300/500/1000 actually behave.
Synthetic indices are high-risk leveraged products. The figures below describe how the instrument behaves — they are not trading advice, and you can lose money faster than on most conventional markets. Never risk money you cannot afford to lose.
How Boom and Crash work
Both are synthetic indices from Deriv. A Boom index ticks gently downward in small increments and then, on average once every N ticks, produces a sharp upward spike — a "boom". A Crash index is the mirror image: it drifts gently upward, then spikes sharply downward — a "crash". The number in the name (300, 500, 1000) is the average number of ticks between spikes: Boom 1000 spikes on average once every 1000 ticks, Boom 500 twice as often, Boom 300 more often still.
The key word is "average". Spikes are randomly distributed around that mean, so the next spike can arrive after 50 ticks or after 2,000. Any strategy that assumes a spike is "due" is fighting probability — the RNG has no memory.
The spike trap: why most beginners lose
The intuitive trade is to buy a Boom and wait for the up-spike, or sell a Crash and wait for the down-spike. The problem is the drift: while you wait for a Boom to spike up, price is grinding slowly down against you the entire time, and on many platforms you cannot always close exactly at the spike. Traders who "hold for the spike" with too much size get bled out by the drift or margin-called before the spike arrives.
More experienced traders often do the opposite of the obvious: they trade the drift (the calm, predictable direction) rather than the spike, using tight risk, and treat the spike as the risk to be avoided rather than the reward to be chased. Whatever the approach, Boom and Crash are among the highest-risk synthetics — position sizing matters more here than almost anywhere.
Boom vs Crash 300, 500 and 1000
Lower numbers (300) spike more frequently but each spike tends to be smaller; higher numbers (1000) spike rarely but the moves and the intervening drift are larger. Neither is "safer" — they simply distribute the same risk differently. Beginners often assume 1000 is calmer because spikes are rare, but the long drift between spikes can be the more dangerous part.
As always, check the contract specification (point value, minimum lot, margin) in your platform for each specific index before trading, because they are not identical.
Earning rebates on Boom and Crash
Boom and Crash traders often trade frequently, which means real spread and commission cost over a month. Routing your account through RebateIX pays cashback — up to $10 per lot — on that volume, without touching your spreads or execution. It will not fix a bad spike-chasing strategy, but for an active trader it is a direct reduction in cost per trade.
Frequently asked questions
What do Boom and Crash indices mean?⌄
They are synthetic indices from Deriv. Boom indices drift down then spike upward; Crash indices drift up then spike downward. The number (300/500/1000) is the average number of ticks between spikes.
Does Boom spike up or down?⌄
Boom spikes UP. It ticks slowly downward and then produces a sharp upward spike on average once every 300, 500 or 1000 ticks depending on the index. Crash is the opposite — it spikes down.
What is the best strategy for Boom and Crash?⌄
There is no guaranteed strategy. Many experienced traders trade the calm drift with tight risk rather than chasing spikes, because holding for a spike exposes you to the drift moving against you. Spikes are randomly timed, so "a spike is due" reasoning does not work. These are very high-risk instruments — manage size carefully.
Which is safer, Boom 500 or Boom 1000?⌄
Neither is objectively safer. Boom 500 spikes more often with generally smaller moves; Boom 1000 spikes rarely but has a longer drift and larger moves. They redistribute the same risk rather than reducing it.
Can I earn cashback trading Boom and Crash?⌄
Yes. Trading a Deriv account opened through RebateIX earns up to $10 per lot in rebates on Boom and Crash volume, funded by the broker's IB commission — your spreads and execution stay identical.
Related synthetic indices
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