Simulated or demo trading is the practice using easy-to-use programs or sometime real trading software systems for imitate actual stock, CFD or forex market trading. Most of these online simulated trading software systems try to match real-market scenarios. There are many benefits of starting your trading career through a simulated trading program.
- You can know how the market works. You will get a chance to monitor price changes, buy, sell, place a range of orders and to know the executions. Some advanced simulators also charge broker fees, commissions and margin costs if applicable.
- Its far better than learning from papers and books. Simulated trading experience can cover lot more things in quick time than any forex trading tutorial. You are trading in almost real-market conditions, so you can experience almost all market forces.
- Learning of indicators and terminologies. And you can realize that how changes in indicator values, news and opinions can cause price changes.
- Testing your strategies. Everyone is expected to have some pre-determined strategies for trading currencies. Simulated forex trading an perfect platform for test these strategies, to evaluate the results and to make custom changes.
- Know forex trading risks. The fact that you start trading with a fixed amount of money, profits and losses can give you a clear idea about different market forces and the risks involved in trading.