Range Break Indices
Range Break indices are the synthetic built for range traders. Price oscillates inside a range, then breaks out to establish a new range — on average once every 100 or 200 range touches, depending on the index. If you like buying support and selling resistance, this is the synthetic designed around that behaviour. Here is how Range Break 100 and 200 work.
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 Range Break indices work
A Range Break index from Deriv spends most of its time bouncing between a floor and a ceiling — a defined range. Then, on average once every 100 (Range Break 100) or 200 (Range Break 200) times it tests the boundary, it breaks out and forms a new range. The number is the average frequency of breakouts: Range Break 100 breaks out roughly twice as often as Range Break 200.
This structure makes range strategies unusually natural: for long stretches, mean-reversion inside the range works as textbooks describe. The risk is the breakout — the move that ends the range and runs against a trader still fading the boundary. The whole skill is respecting that the range will eventually break, and sizing so the breakout is survivable.
Who Range Break indices suit
Range Break indices suit traders who are comfortable with mean-reversion and disciplined about stops beyond the range boundary. They are less suited to breakout-chasers, because breakouts are relatively rare by design. As with every synthetic, check the contract specification and margin, and remember leverage magnifies both the quiet range moves and the breakout.
Rebates on Range Break volume
Range trading tends to mean many small trades inside the range, which adds up to real spread cost. RebateIX returns up to $10 per lot on that volume through the broker's IB commission, cutting your cost per trade without altering your spreads or execution.
Frequently asked questions
What are Range Break indices?⌄
Deriv synthetic indices that trade within a range and then break out to form a new range on average once every 100 or 200 boundary tests, depending on the index (Range Break 100 or 200).
What is the difference between Range Break 100 and 200?⌄
Range Break 100 breaks out of its range roughly twice as often as Range Break 200. Both trade within a range most of the time; the number is the average frequency of breakouts.
Are Range Break indices good for range trading?⌄
They are specifically designed around range behaviour, so mean-reversion strategies feel natural for long stretches. The key risk is the eventual breakout, so stops beyond the range boundary and careful sizing are essential.
Can I earn cashback on Range Break indices?⌄
Yes. Opening a Deriv account through RebateIX earns up to $10 per lot on Range Break volume via the broker's IB commission, with no change to your spreads or execution.
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