Demo and Real Accounts on ExpertOption
One would imagine that it is fairly simple to distinguish between a real account and a demo account, nevertheless, many users struggle with this issue. Particularly those who ask ‘how to cash out funds from a demo account’ or ‘why do I need one at all’ - this article will explore the primary differences and benefits.
A demo account by definition is a simulation of the real trading experience, instead of real money, you are provided with $10,000 in virtual currency to trade on a demo account. You may ask - why do I need virtual money? Why do I need a virtual account? The answer is that digital trading is a difficult day job. Yes, there is potential to earn fast money, but fast does not mean easy!
What is the difficulty, you ask? Often there's a gap in skill, experience and knowledge - if these qualities are not present, profit will be hard to come by, and a loss of money will be more than likely. To avoid losing money, it is better to start learning how to trade with virtual money. For this purpose, the demo account was created.
All real stock quotes and prices are fully duplicated on the demo account. The only difference is that your bids to buy or sell an asset are not affected by the market in any way. For example, if an investor buys gold believing the price will rise, say, for a million dollars, this will immediately affect the market. Other traders will see that someone is willing to invest a significant amount in gold, and follow with an investment of their own - thus accelerating the rise in the price of gold, making it overbought. If you buy gold on a demo account using a virtual million - of course, the market will not react to this. It doesn't really matter. Since the main function of a demo account is to learn, develop intuition, study strategies and trading indicators, which can then be used on a real account to earn real money.
It is very easy to open a demo account on the ExpertOption platform. To do this, just click the "Try free demo" button on the main page. Now you will have access to all the same functions available on a real account, except for functions related to the deposit and withdrawal of money (or bonuses).
Don't be afraid to be wrong! The demo account was created for this precise reason. Like a virtual flight simulator, a demo account protects you from a hard landing or worse, a plane crash.
Try different strategies, all the indicators (there are several dozen of them on the ExpertOption platform), try trading with current trends or against the market, or try Social Trading, which allows you to copy the deals of other traders.
Ultimately, you will create your own unique trading style and be ready to trade real money!
We wish you success trading!