DIFFERENCES BETWEEN DEMO AND LIVE TRADING



Opening of Accounts, Commissions, Differences in the Demo and Live Trading Functioning

You have got the possibility of choice from several options in the frame of the Online Trading at CFDs and Forex exchange. Financial instruments on stocks, stock indices, selected commodities and cross-rates (Forex) can be traded at 4 types of accounts:

Standard Accounts:       Share CFD Trading                      Forex Trading

Mini Accounts:               Mini Share Trading                       Mini Forex Trading

Click on the selected accounts for further specifications! Live Trading is without commissions, with the except of Mini Share Trading, where are set commissions 2,- USD per lot. It is very low commission with regard to the high leverage, but it can play a role with scalping of the markets of few points. But it is the only one way, how to trade financial instruments on stocks for so low financial requirements! If you want to trade main commodities, stock indices and currencies without commissions in the form of mini accounts, very convenient is Mini Forex Trading account. Try demo versions for alll account types and evaluate., which instruments with what conditions are interesting for you. Do not pay where you don’t have to! It is not a problem to have opened more accounts and transfer your funds (for example from Mini Share Trading to Mini Forex Trading etc.) For serious applicants of Online Trading CFD stocks, commodities and Forex with bigger capital are suitable above mentioned standard accounts.

Differences between the Demo and Live Trading

Demo accounts are very convenient for learning effective Online trading on the high-quality trading platform for free. More information you receive in the article Demo Trading, Opening and Running. Nevertheless we remind you some difficulties and differences of Demo versions from Live Trading:

  • Fundamental difference is that the Demo accounts are not managed. Data in the Demo platform are not continuously monitored and are not controlled from the point of accuracy. Everything is managed by automatic software. Execution and trading orders are made on the demo accounts by software without the supervision of the manager, that´s why the execution is always fantastically fast and usually without the bid of ATM changed price with volatile movement, it can be from the beginning quite confusing for the Live trading beginners.

  • If you are trading on the Live platform, each your order is monitored by the manager, who controls the accuracy of all data too. Live platform is online controlled and monitored. Data in the platform are based on the different world exchanges results. Managers are supervising, to ensure you will have real and true data for your trading. According to our exúerience are data on the Live platform actual and accurate, you can compare them with data from TV CNBC and Bloomberg. Real execution of trading orders in Live trading takes 5-10 seconds, but sometimes it can takes tens seconds, oftentimes you can receive electronic slightly changed ATM price, if the market is in the price movement (volatility). Congenitally do not trade approximately 5 -10 minutes after the opening of the exchange as markets can be very volatile and less liquid. The same is with exchange closing approximately 15-20 minutes before the end of trading at the particular exchange. Ask and bid cease, liquidity can be low and your possible order for closing the position or attempt of Stop or Limit 2-3 minutes before the closing don’t have to be made according to your presumptions! 

  • In the overwhelming majority of parameters (from 90%) is the Demo and Live Trading the same. If you want on the demo platform trade in similar conditions as are at real markets you should trade your assets in appropriate trading hours, decisive are data and time details listed on the Online platform for trading! Do not trade few minutes after the exchange opening (approximately 5 minutes or more according to the type of asset), respectively 15-20 minutes before the closing of trading session at the exchange with selected asset.

  • Many beginning traders are on Demo versions in the temptation to trade assets beyond the trading hours in the non-liquid times, in the Open range, or are in the temptation to trade unreal price movements, which arise because of the electronic faults again beyond trading hours of particular exchanges. These price fluctuations are not possible to trade in the Live trading but on the Demo it is possible. The reason is that the Demo trading is only automatic software, that’s why it is oftentimes possible to realize trading transactions, which would never be realized in the Live trading.  Demo software is intended for learning and understanding the exchange, software and principles of trading. Into this Demo version is not possible to add all the real market conditions.

  • Online charts. Charts for CFDs and Forex are functioning online, they are getting electronically the data from particular exchanges. From various reasons there can appear in the software so called “devious data” which can lead into second extreme fluctuations. It can deform the charts scales, particularly on stocks. Devious fluctuationd and unreal prices can not be realized in the Live trading. Never speculate on the results if you see extreme limit movement son the charts! If it is in the Live trading, experienced traders wait until the markets get steady! Delayed charts of other providers are always set right from this unreal fluctuations or misleading details what is of course not possible for Online charts. On the Live trading platform are data for trading monitored are are always accurate, what don´t have to be true on the charts, where are not set right historical data. This does not have influence on the Live trading.

  • You should follow in your Demo trading the Principles of professional Demo trading, to get near the real market conditions. If you start your Live trading try to understand these differences in the Demo and Live trading, respect the Conditions at Real Markets, possibilities and ways of trading orders execution, financial effectiveness of particular assets and principles of safe money management.

    You will learn basic, how to use the software, confirm your strategies etc. in the Demo trading. In the Live Trading you will see the fundamental difference, which is in your emotions and psyche! Simply you would never do the same things which you tried in Demo versions.  
      


   

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