Volatility 25 (1s) Index (V25 (1s))

What is Volatility 25 (1s) Index?

Volatility 25 (1s) Index is a simulated market. A random-number generator produces its price ticks according to a rule that keeps volatility fixed at 25%. 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.

The “(1s)” version updates every second instead of every two seconds. The volatility level is the same, but the chart moves more often, so it can feel faster and noisier than the standard version.

What does the number 25 mean?

The 25 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 25% is read as annualised volatility, a typical daily move (one standard deviation) is around 1.31%. 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, V25 (1s) is a step up from V10 with noticeably larger swings.

How does V25 (1s) move?

Because the volatility is held constant, V25 (1s) 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 V25 (1s) strategy” should be treated with suspicion.

Is V25 (1s) 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 V25 (1s)

• 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 10 (1s)
• More volatile alternative: Volatility 50 (1s)
• All Volatility Indices explained
• Synthetic indices for beginners