STORM Indices are Synthetic Indices that combine standard random price movements with occasional sharp movements designed to simulate news-like market volatility.
A sharp movement can occur randomly at any time and may be significantly larger than the instrument's regular tick-to-tick price movements. These events are generated by the Synthetic Index algorithm and are not triggered by actual economic news or events in real financial markets.
The number in the instrument name reflects the relationship between the probability and magnitude of these sharp movements. On STORM_200, sharp movements occur with a higher probability but are generally smaller. On STORM_500, they occur with a lower probability but are generally larger.
For regular price movements, the probability of the next tick moving up is the same as the probability of it moving down. The direction of a sharp movement is also symmetrical: an upward sharp movement has the same probability as a downward one.
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