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Flip vs Crash and Boom Indices explained

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min read

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Three vertical arrows on a dark slate background. The first arrow is split — coral red pointing upwards and white pointing downwards — representing two opposing directions. The second arrow is solid white pointing upwards. The third arrow is solid coral red pointing downwards. The image illustrates the concept of predictable versus unpredictable price movement direction.

If you already trade classic Crash or Boom Indices, Crash Boom Flip Indices will feel immediately familiar. Both share the same tick-based structure, appear on the same Deriv platforms, and use identical trading mechanics. The key difference is in how direction works, and what it means for every large move on the chart.

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How Crash and Boom Indices move

A Crash Index trends upwards gradually, then drops suddenly. It then resumes climbing until the next drop. A Boom Index trends downwards gradually, then spikes upwards suddenly. It then resumes falling until the next spike. For both, the direction of every sudden move is permanent: Crash Indices always drop on large moves, Boom Indices always spike upwards. The number in the index name reflects how frequently those moves occur on average.

For example, a Crash 500 index experiences a large move on average once every 500 ticks, while a Crash 1000 index experiences one on average once every 1,000 ticks. A tick is a single price update. The lower the number, the more frequently large moves occur; the higher the number, the longer the average interval between them. The number describes event frequency, not direction.

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What changes with Flip

Unlike classic Crash or Boom Indices, a Flip Index doesn’t have a fixed, permanent direction. Instead, it alternates between two phases. In its Crash phase, it climbs upwards gradually while carrying the risk of a sudden drop. In its Boom phase, it declines downwards gradually while carrying the risk of a sudden spike upwards.

What makes Flip Indices distinct is what can happen at the moment of each large move. When a large move occurs, it may flip the phase, ending a slow climb upwards and beginning a slow decline downwards, or the other way around. Other times, the move is absorbed and the index continues in the same direction as before. You can tell which happened by watching whether the gradual drift changes direction after the move.

The numbering system works the same way as the classic family: a Flip 500 Index has large moves on average once every 500 ticks, just like a Crash 500 or Boom 500. But while the number tells you how often a large move arrives, it says nothing about direction. Because direction is determined by whichever phase is currently active, and that can change.

Because large moves can go either way depending on the current phase, strategies built entirely around fixed directional moves from classic Crash or Boom Indices will need to be adapted. Risk management, position sizing, and entry timing all need to account for a two-phase structure where both drops and spikes upwards are possible on the same instrument.

A comparison chart titled 'Crash Boom Flip vs. Crash/Boom' illustrating the differences in movement direction and frequency between Crash, Boom, and Flip 500 indices. — *Figure 1: Comparison of Crash, Boom, and Flip 500 Index movement mechanics.*

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A quick side-by-side

	Classic Crash / Boom	Crash Boom Flip
Trend direction	Fixed for life: upwards (crash) or downwards (boom)	Alternates between the two
Large moves	One direction only: drops or spikes upwards	Both drops and spikes upwards over time
What a large move means	A pause in the trend	A pause or a turning point

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What this means for your trading

When Deriv launches Flip Indices, traders gain access to a dynamic market structure designed to expand traditional trading strategies.

The Flip Index's two-phase structure opens it up to a wider range of approaches than a classic Crash or Boom Index.

Trend traders get clearly defined phases to work with. The direction of the gradual drift tells you which regime is currently in play.
Reversal traders get turning points anchored to visible events on the chart, rather than ones that arrive silently.
Spike traders no longer have to choose between a Crash and a Boom symbol. One instrument produces both downward drops and upward spikes over time.

Whatever the approach, the same discipline applies as with every Synthetic Index: the timing of any individual large move is random. The number in the index name describes a long-run average, so no amount of tick-counting can tell you when the next large move, or the next phase turn, will arrive. Position sizing and stop placement matter here exactly as much as they do on classic Crash and Boom Indices.

If you want to understand what Flip Indices are and how they work in more detail, this resource provides an in-depth explanation.

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Choosing between them

Choose Crash or Boom Indices if you prefer trading with a fixed, known direction and a consistent movement pattern around sudden spikes or drops.
Choose Flip Indices if you prefer two-phase market movements where both drops and spikes upwards are possible on the same instrument, and where large moves can mark turning points as well as continuations.
Trade both to diversify your approach. These indices operate independently, so activity on classic Crash or Boom Indices has no effect on Flip Indices.

Flowchart comparing strategy approaches between predictable Crash/Boom indices and uncertain Flip indices. — *Figure 2: Strategy workflow comparison between fixed direction Crash or Boom Indices and two-way Flip Indices.*

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Compare them yourself

The best way to understand how these indices differ is to observe them live on price charts. Open a free Deriv demo account to chart classic Crash, Boom, and Flip Indices side by side to practise strategies with virtual funds.

*Figure 3: Side-by-side view of Crash 150, Boom 150, and Flip 150 Index chart movements on the Deriv cTrader platform.*

Watch each chart for a few minutes. On a Crash or Boom Index, you’ll notice a consistent cycle in one direction: drop, slow climb upwards, drop, or spike upwards, slow decline, spike upwards. On a Flip Index, watch what the price does immediately after each large move: If the gradual drift changes direction, the phase has turned. If it continues the same way, the move was absorbed. That distinction is the clearest sign of what makes Flip Indices a different instrument entirely.

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FAQs

Can I use the same strategy I use on Crash or Boom Indices when trading Flip Indices?

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Not directly. Strategies built around Crash or Boom Indices typically rely on knowing the direction of the next sudden move in advance. On a Flip Index, that direction is random, so any strategy that depends on directional certainty will need to be adapted. Risk management, position sizing, and entry timing all need to account for the fact that the next move could go either way.

Does a higher number mean a Flip Index is less risky?

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Not necessarily. A higher number, such as Flip 1000 compared to Flip 150, means sudden moves happen less frequently, but they tend to be larger when they do occur. Less frequent doesn't mean less impactful. The right index depends on your trading style and how you prefer to manage exposure between moves, not on which number feels safer.

Is there any way to tell which phase a Flip Index is currently in?

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Yes. You can observe it on the chart. If the price is drifting upwards gradually between sudden moves, the index is in its Crash phase, meaning the next sudden move carries the risk of a drop. If the price is drifting downwards gradually, the index is in its Boom phase, meaning the next sudden move carries the risk of a spike upwards. Identifying the current phase tells you the direction of the drift, even though it can't tell you when, or whether, the next large move will flip it.

Can technical indicators predict the direction of the next spike on a Flip Index?

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No. Each spike on a Flip Index is generated independently, and past moves have no influence on future ones. No indicator can tell you whether the next spike will be a drop or a spike upwards. Indicators can still be useful for timing, volatility assessment, and risk sizing, but not for predicting direction. On standard Crash or Boom Indices the read is different, because the direction is fixed in advance and already known.

Which timeframe works best for trading Flip Indices?

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The one-minute timeframe suits most traders looking to catch sudden moves, because it shows spikes as they happen and allows for quick reactions. The trade-off is more noise and faster decision-making. Unlike standard Crash or Boom Indices, where you can plan around a fixed spike direction, on a Flip Index you need to plan for a move in either direction before the spike arrives, not after. Test a few shorter timeframes on a demo account and settle on the one that matches how quickly you can act.

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