If you begin to understand overview of forex. So then you also need to be familiar with what is called a ‘demo account in forex trading’. Demo is important because with this demo account you can more easily understand, comprehend, and view real-actualization about how the online forex trading.
Definition Demo Account
The demo account is an account that is provided free by online forex brokers. And almost 90% of online forex brokers provide facilities for this demo account. Where’s the demo account traders (newbie / beginner) can trade forex with data that actually existing in the forex market today (the exchange / rate forex pair) plus traders can also buy operation open / close, and so the strategy practice complete and thorough.
BUT: Funds used to open buy / sell / transaction is money or play money only.
SO: If win, gain / profit is also not worth for money toy / virtual course. Conversely, when lost, you also do not need to replace or loss is actually (for real money), do not be afraid brokers will not charge you for losses that occur in this demo account
Purposes Demo Account
For new traders:
Of course, to ripen the ability of traders in forex trading before traders decided to use a real account (real money). Traders can beruji try to practice trading system freely, without fear to bear the loss when making a mistake or losing a trade.
For broker:
It is a marketing tool for prospective new trader, the trader is able to know more in-depth broker. And to view an online trading system performance given by the broker (server speed, platform, execution, etc.)
Specifications Demo Account
Surely there is little difference in performance (technical) between demo and real accounts. In the demo account, the broker will use a server that is certainly not optimal as the server for a real account. Or point there must be a difference in speed of execution. It could be faster or slower, it can not be totally sure. If it turns out that traders use a demo less on brokers could be noticeably faster. There is no guarantee when a system has been tested successfully protested, certainly in real well managed or even better – not really.
Especially if you use a trading robot, performance, or results of the demo account does not necessarily reflect the results in the real account. Please be careful in this regard.
Psychological Hazards In Demo Account
Traders who practice first with a demo account, is certainly good. And the longer he held on to secure the result that both the demo account first, of course, is getting better.
However, analogous to the way we play, the toys only (no risk) or real (risk) will have an impact on the psychological aspect of a person. When the demo you can be assured and confident in opening or closing transaction, bold cut loss, dare to wait, and so on.
But in real, adrenaline be accelerated and all logical thought would be mixed with the emotional aspects. You can lose confidence, you will be free of your analysis, you are so emotional because you lose, and so on. You may wish to consider.
But:
Keep wise to start with a demo account. Without practicing first, you are not aware it is definitely going to see mistakes and defeats. Remember the forex market is ready to pounce on their malignant anyone.
