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Are Synthetic Indices Manipulated? Separating Facts from Myths

Synthetic indices are designed to simulate real-world markets. However, price movements in the synthetic market are immune to inflation, geopolitics, and macroeconomic news. Instead, synthetic indices rely on algorithms and random number generators to create prices with predefined volatility characteristics and market-like trends. The model behind synthetic indices has raised multiple questions among traders. Some think brokers can manipulate synthetic markets, given that computer algorithms generate the price trends and volatility. This article examines these concerns by reviewing how...
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