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Why novice Forex trader needs a demo account?
Written by: PaxForex analytics dept - Friday, 04 November 2016 1 comments
PaxForex offers demo accounts for everybody, and especially encourages them to beginners of the Forex financial market. We do this to ensure that customers will be trained to trade currencies without unconsidered risk, get used to it and develop their own trading strategy before moving on to work with a real trading account.
That is why the demo account has no restrictions such as deposit funds or limited time of use of virtual funds. Thus, you can use a demo account as much as necessary and fill up its virtual credits at any time. When one open a real account client can absolutely free to continue to train and develop his trading strategies and market analysis on a demo account.
What is a demo account and how it differs from the real? Demo account is a simulator of a real trading account. Its main difference is that trading on it is carried out using the virtual, not real money. But everything else is similar - access
to market quotes online, the same rules of transactions, the news flow, etc.
Opening a demo account on Forex market pursues a number of objectives:
- Development the knowledge of MT4 trading platform, its features and capabilities;
- Learning the correct opening and closing orders, taking into account the deposit, lot size, etc .;
- Training in basic money management rules for a reasonable distribution of your trading capital;
- Testing your trading strategies in real time.
The greatest advantage of the demo account in the psychological comfort, because there is no risk of losing real money, thus allowing at the initial phase of work on the Forex to dedicate more time to search and development of profitable trading strategies.
At the same time, it should be noted that a long stay on a demo account does not increase but vice versa - reduces your potential trading abilities. After all, only a full trading account and experience with real tools and real market conditions can turn you from a novice to a professional Forex trader.