Volatility 100 Index (V100)

What is Volatility 100 Index?

Volatility 100 Index is a simulated market. A random-number generator produces its price ticks according to a rule that keeps volatility fixed at 100%. 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 100 mean?

The 100 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 100% is read as annualised volatility, a typical daily move (one standard deviation) is around 5.23%. 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, V100 is the most volatile of the standard Volatility Indices.

How does V100 move?

Because the volatility is held constant, V100 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 V100 strategy” should be treated with suspicion.

Is V100 good for beginners?

It moves very fast, and a small account can be wiped out within minutes if you use large lots or no stop loss. Most beginners should start with a lower-volatility index and practise on a demo account first.

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 V100

• 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

• Calmer alternative: Volatility 75
• All Volatility Indices explained
• Synthetic indices for beginners