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Demo vs live trading - same difference?

Discussion in 'Beginners Bootcamp' started by Calypso2477, Jul 31, 2009.

  1. Calypso2477

    Calypso2477 Recruit

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    Hey there,

    Typically of this thread I'm rather new to all this forex business. I have a demo trading account happening at the moment through FXCM where my little strategies and indicators are doing well.

    My question is - will my results in demo trading hold up in the real live trading world? I dare say that slippage will be a new factor in live trading and I'm prepared to deal with that, but what other variables can I expect when I go live?
     
  2. Pharaoh

    Pharaoh Colonel

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    Slippage and requotes are the biggest differences between demo and live. Some brokers ban news trading, but it works great on demo. Some brokers ban scalping (and the definition of scalping varies a lot from broker to broker), but it works great on demo.

    Demo trading is good to see if something has the potential to be profitable with a broker. Only live trading (and successfully withdrawing profits) can prove it.
     
  3. NorbertS

    NorbertS Recruit

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    Hi,

    the differences between demo and live trading depend on your broker. I have not used FXCM so far, so I can only answer the question in general:

    - I have not seen any requotes in the demo system
    - there are brokers who calculate their prices based on the position their clients hold, so with a position in the live system you have an impact on the market price (provided by your broker).

    After my first bad experience with the demo/live difference I asked my new broker: "is there a difference between executions in demo and live?" his answer was "No, there is none -- they are only slightly different". ;-)

    Calypso2477, do you went live with your system already? Did you find differences between demo and live at FXCM?
     
  4. Nancy Cheah

    Nancy Cheah Sergeant

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    Trading demos, you can have peaceful sleep.

    Trading live ones, you can have lack of sleep.

    Regards.
     
    #4 Nancy Cheah, Aug 21, 2009
    Last edited: Sep 5, 2011
  5. Lhar_fpa

    Lhar_fpa Private, 1st Class

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    There's a lot of differences, in live trading you need real money to trade. If you loss, probably your face value will decrease. You know what I mean, but then you will learn a lesson from it, that will motivates you to think of your own strategy. In demo, you will not worry about the money that your going to loss, but then you will not know the real thing when your on a live trading.
     

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