Step Indices Trading Guide 2026 | How Step Index Works on Deriv

What Are Step Indices?

Step Index is probably the most straightforward synthetic index you will ever trade on Deriv. If you're just starting out, this is a great place to begin.

Here's how it works: Step Index has an equal probability of going up or down, and each tick moves by exactly 0.1. Think of it like flipping a coin — heads it goes up 0.1, tails it goes down 0.1. That's it. No complicated volatility levels, no random spikes or crashes.

Step Index Lot Sizes and Specifications

Before you place a trade, you must know the rules of the contract. Here are the key specifications for Step Index on Deriv:

High-Probability Step Index Strategies

1. Breakout Strategy

Because Step Index moves in increments of 0.1, it trends beautifully when a breakout occurs. Look for key support and resistance levels on the 15-minute or 1-hour chart. When the price breaks out of a consolidation zone with strong momentum, enter a trade in the direction of the breakout. Set your stop loss just inside the broken consolidation zone.

2. Simple Moving Average Crossover

Use a 9-period Exponential Moving Average (EMA) and a 21-period EMA on your chart. When the 9 EMA crosses above the 21 EMA, it's a buy signal. When the 9 EMA crosses below the 21 EMA, it's a sell signal. This works best when the market is trending.

Risk Management Tips for Step Index

Do not let the simplicity of Step Index fool you. Because the price moves steadily, a trend can go against you for a long time. Always use the minimum lot size (0.10) if you have an account under $100. Never trade without a stop loss, and aim for a risk-to-reward ratio of at least 1:2.