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Deriv Launches Boom and Crash 300

For those of you who have been trading Boom and Crash on Deriv/Binary.com for the past few years you will be pleased to note that the forex trading broker has now added the 300-variant to it’s arsenal of services.

Boom and Crash are part of the Synthetic Indices that are unique to Deriv, a set of instruments that are purely made up and not linked to any real world activities. Synthetic Indices have proved to be a major hit in Zimbabwe, where traders love and appreciate the volatility that it provides – volatility means how quick a market’s price will change over a period of time.

Not only have Zimbabweans embraced Synthetic Indices but currently Zimbabwe sits in the top 5 most active countries in Africa that trade on Deriv, with there being tens of thousands of traders.

Boom and Crash are financial instruments that operate a lot like the cryptocurrency markets that react to one of Elon Musk’s tweets!

For the newbies and uninformed there were 4 types of financial instruments prior to this launch; Boom 500, Boom 1000, Crash 500 and Crash 1000. Both Boom and Crash operate on a system of ticks and then a spike.

How Will Boom and Crash 300 Work?

The mechanism of the Boom Indices are that the price will slowly move downwards one tick at a time, often times there being more than 1 tick in a minute, and at no later than 300 ticks (500 ticks for Boom 500, and 1,000 ticks for Boom 1000) there will be a spike. The guarantee from these markets is that within 300 ticks (500 ticks for Boom 500, or 1,000 ticks for Boom 1000) that market will spike at least once.

Crash is exactly the same as Boom, with the exception that the market moves in the opposite direction. Where Boom’s ticks move downwards, Crash’s ticks are upwards. And while Boom spikes upwards, Crash spike’s downwards.

The guarantee for Crash 300 is that after no more than 300 ticks (500 ticks for Boom 500, or 1,000 ticks for Boom 1000) the market will spike at least once.

However, what is not known is:

  1. When that spike will come – sometimes you can get two spikes immediately after each other, or a spike after 299 ticks
  2. How big the spike will be – the size of the spike is not known and sometimes it can cover 10 pips, sometimes 50 pips

Are Boom and Crash 300 Better Than The Others?

With the markets just having been launched it’s still too early to tell whether these markets will be ‘better’ than the others. One thing is for certain is that traders who have taken a liking to these instruments will surely gravitate more towards them.

The more traders trading a certain instrument, means more potential profit for Deriv. More profit will mean them wanting to keep it running for much longer, the opposite being true as we saw with the HF Volatility Indices that didn’t have many traders taking a liking to it.

One thing traders will want to look out for to know how much better these markets are will be to see if the trend a lot, as money is made in trending markets – but then again styles differ and you may have found a way to make money in a ranging/consolidating market.

How Do I Make Money From Boom and Crash 300?

There are two (maybe three) different styles of trading these instruments, the first being those who chase spikes, the second being those who chase ticks, whist the third are those who trade on a higher time frame and and don’t really look at the ticks and spikes but the market as a whole.

Tick traders usually go into blue/profit immediately on entering as there are more ticks than spikes and the market ticks and then spikes. As the name suggests, the 300 is less than the other instruments and this should give more frequent spikes than the other assets, what’s not known is how big those spikes will be.

The best would be to figure out what style of a trader you are, test it out on your demo account, then get your hands dirty by trading a small account.

Conclusion

Personally I trade Boom and Crash, and I’ll definitely be having a go at these two new assets. The end game is to make money, so if they prove to be more rewarding then my thirst and appetite for Step and Volatility 75 will definitely be reduced – those to are hot, like a heetooor!

If you have any questions and/or comments in regards to Boom and Crash 300 please feel free to leave them in the comments below. If you have any other questions pertaining to forex trading in Zimbabwe, do visit our help forum help.forextrading.co.zw

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