Why do I need a 'Demo' or 'Paper Trade' account with my broker?
Posted by Paul Ridout on 14 April 2018 01:35 AM

It is absolutely essential that you fully understand the terminology of your broker (which may vary from ours), and their own methods of opening/closing trades, managing profits and adjusting stop-loss orders.

Trading in a 'Demo' account is not the same at all as trading a 'live' account.  It is not 'real'.  You will likely be far more relaxed, and therefore so inclined to take risks that you would find hard to justify to yourself if it all went horribly wrong in a 'live' account.

But, by using a 'Demo' or 'Paper' account, you will learn the exact processes used by your own broker.

So, you MUST be very familiar with the processes used by your chosen broker.  Mistakes on orders and stop-losses in a 'live' account can be very expensive indeed.

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