Marked 5 years 3 months ago onto What is Synthetic Indices Trading?
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Synthetic indices are imitated trading instruments which mirror the behaviour of the real financial markets. Since these are simulated markets, so the question arises who moves these markets? Some randomly generated numbers move synthetic indices. A cryptographically safe computer programme generates these random numbers and to ensure transparency issues. There is no control or influence of a broker over these randomly generated numbers. Neither can they predict which number will be generated next? The random number generator is audited by a third party to make sure the fairness of the process.
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