The demo account (demo account for short) - is a free type of trading account in which the virtual currencies used for transactions. Operations carried out on the basis of current market prices with all technical systems and tools used on real accounts. Trading terminals, the process of opening and closing orders, the use of indicators and graphic elements as well as many other software features - all absolutely identical, no matter what type of account you use. This lack of distinction is valuable to use demo accounts. A novice trader can fully familiarize themselves with the practical side of the trade and do not lose a penny of their own money on failed transactions or random action.
As mentioned above, the main and perhaps the only difference from a real account is the use of virtual currency. Accordingly, the bids can also be called virtual, so all sales transactions are carried out using separate servers. Here, all trades are executed automatically and without any delay due to lack of supply or demand, as it can be in the real market.
The value for the trader.
Demo account is a great companion not only for beginners but also for professionals. The former can use it to start a study of the many functions of the terminal, to conclude its first transaction and not lose with his own money. Second open tremendous opportunities to try out a new trading strategy to identify its advantages and disadvantages, to carry out a full analysis and bring everything to perfection before using a live account.
Key features that open the user demo account can be combined into several groups:
1. Investigation of the trading terminal - is ideal for the study of the functional program, if you are not familiar with it. I do not need to prove the significant gap in the effectiveness of learning by the simple scrutiny of the terminal and training, in which everything can be without fear to try the case. The demo account provides complete freedom of action, and it blurs the line between boring theory and intensive practice.
2. Technical skills - an integral part of successful trading is the accuracy and efficiency of operations. Especially these qualities are important in intraday trading or scalping when to think and opening of the transaction can be available just a few minutes or even seconds. At such times, it is essential to have experience fast opening orders, setting levels of Stop Loss and Take Profit, total or partial closing of positions. All these, and many other skills, can successfully develop the training using a demo account.
3. Experience with the market - with the help of a demo account, you can learn not only the trading terminal and the market in general. Daily monitoring, analytics, visual identification and memorization of graphic models - all this creates an experience that is crucial to trade.
4. Testing trading strategies - even perfectly calculated the theoretical part of the system does not guarantee that in practice it will show good results. Always keep in mind that the market is not constant, so any calculations should reinforce the statistical data. If the parameters of your trading system allows you to test it on a demo account, then it should definitely be done.
