Most Traded Synthetic Indices: Where Traders in Costa Rica Focus Their Attention
Synthetic indices are ideal for traders looking to invest in a market that is available 24/7, 365. Unlike the conventional financial instruments available in the market, synthetic indices are generated using algorithms.
The concept of synthetic indices has gained traction with online trading communities and platforms. Many traders love synthetic indices because they aren’t tied to real commodities or stocks, making them immune to geopolitics and macroeconomic news.
In this guide, we look at the most traded synthetic indices, offering you advice on what you should focus on if you plan to invest in them.
What Makes an Index “Most Traded”
When evaluating the most traded synthetic indices, traders look at liquidity and trading volume. Liquidity points to how easily traders can buy or sell indices in the market without losing much from slippage.
High liquidity leads to tighter spreads, making the total cost of trading cheaper. This, in turn, boosts market activity and trading volume.
Another key factor is market relevance. Synthetic indices that are widely discussed in trading circles and news often attract both long-term investors and active traders. Overall, global relevance and liquidity play crucial roles in determining the most traded synthetic indices.
Overview of the Most Traded Synthetic Indices
The most traded synthetic indices are available for trading 24/7 in Costa Rica through brokers such as Weltrade that offer synthetic markets.
- Volatility Indices
On this list, volatility indices are widely regarded as being classified in the most traded category. Synthetic indices such as Volatility 10, 25, 50, 75, and 100 represent markets with increasing simulated volatility levels.
Volatility 75 is by far one of the most traded synthetic indices because it offers the perfect balance of trading opportunities and frequent movement. On the other hand, Volatility 100 and 250 are two of the top 10 most volatile synthetic indices.
- Crash and Boom Indices
This is another group of synthetic indices that is highly traded. They emulate assets that trend in one direction, with occasional rapid spikes (boom) or declines (crash) at programmed intervals and levels. However, crash and boom indices aren’t ideal for traders looking for less volatile synthetic indices.
- Step Indices
Step indices are another category of the most traded synthetic indices. They move in fixed increments and offer opportunities for scalpers who trade synthetic indices on MT4 or MT5 in Costa Rica.
Key Factors Driving Trader Attention
The primary factor drawing traders from Costa Rica to synthetic indices trading is 24/7 market availability. Unlike conventional markets, which operate during specific hours, synthetic indices operate continuously because they are not linked to real-world markets.
Second, synthetic indices aren’t affected by external factors. A company announcing its end-of-year financial report or a country raising tariffs doesn’t affect synthetic indices.
Synthetic indices are 100% algorithm generated, and price movements are unaffected by real‑world news. This creates a cleaner technical trading environment where chart patterns and indicators play a central role.
Trading synthetic indices also lets traders focus on predictable volatility profiles. For example, traders may prefer investing in less volatile synthetic indices because they carry less risk.