Volatility 10 Index (V10)

What is Volatility 10 Index?

Volatility 10 Index is a simulated market. A random-number generator produces its price ticks according to a rule that keeps volatility fixed at 10%. Unlike a real market, there is no news, no company and no economy driving it, so you cannot use fundamental analysis on it. You trade it as a CFD, buying if you expect the price to rise and selling if you expect it to fall.

What does the number 10 mean?

The 10 is the index’s volatility level. Volatility measures how much a price moves. A higher number means bigger and faster swings, which can produce larger profits and larger losses in a very short time.

As a rough illustration, if 10% is read as annualised volatility, a typical daily move (one standard deviation) is around 0.52%. That is only a statistical guide, not a prediction: real moves can be much larger or smaller, and prices can move that much within minutes at times.

Compared with the rest of the family, V10 is the calmest of the Volatility Indices.

How does V10 move?

Because the volatility is held constant, V10 does not have “quiet” and “news” periods like forex pairs do. It keeps producing the same size of random ups and downs all day and night. On a chart it looks like a jagged, trending-then-reversing line, and trends can appear and vanish without any reason.

Since the ticks are random by design, no indicator or chart pattern can reliably predict the next move. Anyone selling you a “guaranteed V10 strategy” should be treated with suspicion.

Is V10 good for beginners?

It is one of the gentler synthetic indices, so it gives you more time to react, but it is still a leveraged, high-risk product. Start on a demo account and use the smallest lot size.

If you decide to try it, follow these safety rules: practise on a demo account first, use the smallest lot size, always set a stop loss, risk only 1–2% of your account per trade, and follow our 5 risk management rules.

Common mistakes when trading V10

• Using lots that are too big for the account size.
• Trading without a stop loss, or moving the stop further away.
• Over-trading because the market is always open.
• Chasing losses after a bad trade.
• Believing a pattern “always” repeats on a random market.
• Trading with borrowed or needed money.

Compare other Volatility Indices

• More volatile alternative: Volatility 25
• All Volatility Indices explained
• Synthetic indices for beginners