what are synthetic indices?

Anyone know what synthetic indices are and how they differ from the conventional indices we ae used to?

M
@melody_nk - 5 months ago

When something is synthetic it means it is not real, so synthetic indices are not tracking any real stock market. Conventional indices like NAS100, US30, S&P500 etc. all track stocks in different sectors of the economy, but synthetics don't.

Synthetic indices were created to make up for some of what the inventors saw as the shortcomings of conventional indices.

For example, conventional indices can't be traded during weekends, can't be traded in the night because the stock exchanges close for business, are affected by news etc. However synthetic indices don't have these limitations.

Synthetic indices can be traded during weekends, can be traded all day (without those annoying market breaks) and can designed for any trader skill level.

H
@headies25284 - 3 weeks ago
Quoted - kehinde

But do prop firms allow trading of synthetic indices or is it against any of their many rules?

Well, Blue berry prop firm is the only prop firm I’m aware that offers synthetic indices.

You can check them out here

www.blueberryfunded.com

H
@headies25284 - 3 weeks ago
Quoted - kehinde

Okay, I will, many thanks

You are welcome, always here to help.