Working on a demo account.

One of the main components of learning to trade is working on a demo account; without this stage, it is not advisable to start real trading, as this is fraught with a rapid loss of existing capital.

Working on a demo account allows you to solve the following problems: study the capabilities of a trader’s trading terminal, learn how to open trades and manage open positions, test new strategies and check the operation of indicators and advisors.

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

The main difference between demo trading and working on a real account is the absence of psychological factors on a demo account; here you are not afraid of losing virtual money, so the process itself is of a slightly different nature. It is this feature that should be taken into account when comparing these two Forex trading options.   

How to work correctly on a demo account.

First of all, you should remember the basic rule - the more similar your trading conditions are on a virtual account, the more useful the acquired skills will be.

When you start learning to trade forex, you probably have an idea of ​​what amount and what leverage you will trade with in the future.

For example, if you have 100 dollars, it is stupid to open a demo account for a million, the same applies to leverage. If you want to conduct measured trading and not use leverage of more than 1:50, then set this indicator in the demo. You should also take into account other features of trading, such as the currency pair and the timing of transactions.

Checking indicators and advisors.

In this sense, a demo account is simply invaluable, since some of the technical analysis indicators simply do not want to work, while others do not provide entirely correct information.

The same point applies to working with Forex advisors. It is clear that it is easier to test the downloaded instruments first on a demo account, and only then bet on a real one.

During testing, as well as during simple trading, the scripts are configured according to the same parameters as for real trading.

How to open a demo account?

Opening a virtual account is quite simple; for these purposes, you first need to register at one of the Forex dealing centers , and then download the trader’s trading terminal.