What is a Demo Account?
Demo Account
Forex Trading Glossary
Quick Answer: A demo account simulates real market pricing with virtual funds, allowing traders to practice without risking capital.
What is a Demo Account?
A demo account is a simulated trading environment that lets you practice without risking real money. It mirrors live market prices but uses virtual funds.
Benefits of Demo Trading
- Platform practice: Learn order entry, charting, and risk tools.
- Strategy testing: Evaluate setups before committing capital.
- No-risk learning: Build familiarity with market structure.
- Automation trials: Forward-test algorithms in real-time conditions.
Bridge to Live Trading
Treat the demo like real money by following your plan and keeping detailed records.
Limitations
- Emotional gap: Lacks real psychological pressure.
- Execution differences: Live slippage may differ from demo fills.
- Discipline risk: Traders may take reckless demo trades that never translate live.
- Transition plan: Gradually move to live trading with small size once consistent.
Related Terms
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