Working on a demo account.

One of the key components of trading training is working on a demo account. Without this step, it is not advisable to begin real trading, as it can lead to a rapid loss of existing capital.

Working on a demo account allows you to explore the capabilities of the trader's trading terminal, learn how to open trades and manage open positions, test new strategies, and check the performance of indicators and advisors.

A demo account is a free testing ground where you can test any of your assumptions and guesses, and do so under conditions as close as possible to real trading.

The main difference between demo trading and trading on a real account is the absence of psychological factors on a demo account. You're not afraid of losing virtual money, so the process itself is slightly different. This is precisely what should be taken into account when comparing these two forex trading options.  

How to work correctly on a demo account.

First of all, remember the basic rule: the more similar your trading conditions are to your virtual account, the more useful the skills you'll gain.

When you begin learning forex trading, you probably have an idea of ​​the amount and leverage you'll be trading with. For example, if you have $100, it's foolish to open a demo account with a million. The same applies to leverage. If you want to trade at a measured pace and not use leverage greater than 1:50, then set that level on your demo account.

You should also consider other trading specifics, such as the currency pair and trade execution time.

Testing indicators and advisors.

In this sense, a demo account is invaluable, as some technical analysis indicators simply don't work, while others provide inaccurate information. The same applies to working with Forex expert advisors.

It's clear that it's easier to test downloaded tools first on a demo account before using them on a real one.

During testing, as with regular trading, script settings are configured using the same parameters as for live trading.

How to open a demo account?

Opening a virtual account is quite simple. To do this, you first need to register with one of the forex dealing centers , and then download the trader's trading terminal.