What is Boom and Crash in Forex Trading?

The boom and crash market is gaining traction every day. New financial traders are beginning to ask “What is boom and crash in forex trading?”. It is normal to see this kind of question, but the problem is that this question is wrong.
Boom and crash markets are not in the forex market. Though they have some similarities, Boom and crash are a different market from forex. The two markets are both important products in their own right.

Because these two types of markets can be traded on this platform, many think they are the same financial products, but they are actually wrong.

So, if you want to trade one of them and you don’t know which one to go for, you will need to understand their differences before you can decide which one you want to trade with.

To answer the question ” What is Boom and crash in forex trading?”, I will first explain what Boom and crash is and then show you their similarities and differences with the forex market.

So, come with me. Let’s get started.

What are Boom and Crash?

Boom and Crash are Synthetic indices, which are financial products solely based on cryptographically secure random number generators. They are not real-world products; rather, they were designed to track real-world markets (forex, stocks) with some modifications. The synthetic index market, unlike the foreign exchange market, has constant volatility

Also Read:  How to Analyze Synthetic Indices on TradingView.

If you are an experienced trader, you must be aware that what causes high volatility in the market most is natural pressure. Events from the government, notable companies, or even influencers are the major drivers for sudden liquidity in forex and other markets. But because Boom and crash are not affected by this kind of natural pressure, they have relatively constant volatility.

Recommended: Best Time to Trade Boom and Crash

What is Boom and Crash in forex trading?

Because synthetic is a different market from forex, this question; “What is Boom and Crash in forex trading?” is unrealistic. However, I will answer it by showing you the similarities and differences between the two markets.
The major way that Boom and Crashs are similar to forex is in price action. Basically, both Boom and Crash and foreign exchange market obey technical analysis. However, forex is affected by fundamental factors like market news…

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Boom and Crash and forex differ in many ways. Let’s go through their differences one-by-one.
1. Volatility: Just like I said before, Boom and Crash have fairly constant volatility, while forex volatility fluctuates relatively high. This is because, unlike Boom and Crash, forex is affected by fundamental factors.

Also Read:  Top 6 Best Synthetic Indices to Trade in 2022

2.Spread: Boom and crash have a very low spread, sometimes as low as one pip. On the other hand, forex offers a very high spread, especially when there is high volatility.
3. Market Days—The Boom and Crash market is open every hour and every day while the forex market only trades from Monday to Friday, limiting traders’ trading days.
4.Tradeable assets: The assets being traded in forex are national currencies like USD, EUREUR, NGN, pounds, and others. These currencies are paired against each other in their relative value. The fluctuations in the strength of these currencies against each other are what give traders opportunity.

On the other hand, the assets being traded on the Boom and Crash market are virtual products programmed to track the behavior of forex and the likes. Examples: Boom 1000, Boom 500 etc

5.Reliability: The forex market is more reliable than Boom and Crash.

5.Trading capital: You can start trading the  Boom and Crash market with as little as $1, whereas trading accounts require a minimum trading volume in forex.

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I believe you know the difference between a boom and a crash market and have understood that the question ” What is a boom and a crash in forex trading” is unrealistic. If you have any questions, you can leave them in the comment section below. I will do my best to attend to them.

Also Read:  How To See Options Charts In Tradingview.

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