Step Index
The Step Index is the synthetic that beginners are usually pointed to first — and for good reason. It moves in equal, fixed-size steps with an equal chance of going up or down, giving it the lowest, most predictable volatility of the Deriv synthetic family. Here is why it behaves the way it does and how to trade it sensibly.
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.
What makes the Step Index different
Most synthetic indices vary the size of each move. The Step Index does not: every tick moves the price by a fixed step of 0.1, and each step has an exactly equal 50% probability of being up or down. That makes it the closest thing to a pure, symmetric random walk in the synthetic family — and the reason its volatility is both low and remarkably constant.
For a new trader, that predictability is valuable. There are no violent spikes as with Boom and Crash, and no 75%-volatility swings as with V75. Risk per tick is knowable, which makes the Step Index a sensible place to practise position sizing, stop placement and a mechanical strategy before moving to the wilder instruments.
How to trade the Step Index
Because moves are uniform, range and mean-reversion techniques tend to feel natural on the Step Index, and trend moves are smoother than on higher-volatility synthetics. The flip side of low volatility is that profit per pip is smaller, so some traders use slightly larger size — which reintroduces exactly the risk they came to the Step Index to avoid. Keep the discipline: size to a fixed cash risk, not to a profit target.
As with every synthetic, confirm the contract specification (minimum lot, point value, margin) in your platform, and remember that leverage magnifies even the Step Index's calm moves.
Rebates on the Step Index
Lower volatility often means more trades to reach the same result, which means more spread paid over time. RebateIX returns cashback — up to $10 per lot — on that Step Index volume through the broker's IB commission, so your cost per round-turn drops while your execution is unchanged.
Frequently asked questions
What is the Step Index?⌄
It is a Deriv synthetic index that moves in fixed steps of 0.1 with an equal 50% probability of an up or down step. This gives it low, constant volatility and makes it the most predictable of the synthetic indices.
Is the Step Index good for beginners?⌄
It is often recommended for beginners because it has no sudden spikes and its risk per tick is knowable and constant. That makes it a good instrument to practise risk management before trading higher-volatility synthetics — though it is still a leveraged, high-risk product.
What is the step size of the Step Index?⌄
Each move is a fixed step of 0.1, up or down, with equal probability. Unlike volatility indices, the size of each move does not change.
Does the Step Index trade on weekends?⌄
Yes, like all synthetic indices it trades 24 hours a day, 7 days a week, because it is generated by a random number generator and not tied to any real market.
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