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Chapter 5, Part VI. The time has come to talk about DEMO.

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Apr 19, 2011.

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  1. Administrator

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    Part VI. The time has come to talk about DEMO [​IMG]
    Commander in Pips: So, we’ve studied a lot of stuff. Now you know how to read quotes, open and close positions, calculate profit and loss, margin requirements and even how place orders. But it’s too early to start with real money trading still.

    Pipruit: Why not? I think that I can independently open trades, I understand all information, know how to place orders, as you say​

    Commander in Pips: Let me just single stupid question – and when and where you will open these positions, that you’ve talking about? And generally speaking – you do not have a profitable system of trading.

    Pipruit: Oh, I didn’t think about that yet. So what should I do know?​

    Commander in Pips: Don’t worry, son. We will definitely create a good trading system as we will move through our school. But today, I want to tell you about using Demo accounts. My thought about demo is that it is a must.

    [​IMG]
    And there are some reasons for that:

    1. Demo trading is free. As we discussed previously, the FX brokerage and dealing service market is very competitive. FX Brokers and Dealers struggle against each other for customers, so demo accounts have become an additional free service a long time ago. But why do brokers and dealers provide these accounts for free? It isn't a secret. Most traders use demo not just for testing the trading software itself, but for trading training. So the longer you use a particular demo software, the greater the probability is that you will open a real account with this broker. Because you will become accustomed to the trading platform and the broker the longer you use it. Providing demo accounts for free from brokers and dealers allows clients investigate all the advantages and disadvantages of trading software, terms and quality of the brokerage services in general. If a broker provides good services and has a good software people will be more likely to open a real account with him. That’s simple.

    2. Demo has all qualities of a real account trading. Currently demo trading is real-time with real quotes. In fact, there is only one difference to real trading – all your profits and losses are on paper only. But you trade demo with real market quotes with real margin calculation, swaps, profit and loss and all other things. Demo account is real, except the money isn't real. The only other difference is that a demo account usually has less slippage and requotes than a real account. Hence we come the next quality of demo –
     
    #1 Administrator, Apr 19, 2011
    Lasted edited by : Feb 7, 2016
    Nachoga, TOURADA and fran alvarez like this.
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