Forex demo accounts are virtual trading accounts that give a better grip on the knowledge of online Forex trading. These accounts can be accessed using all types of computers and operating systems, and even through mobiles and laptops. Forex demo account is complete software that gives real experience of online trading, which includes real forex rates, forex commentary, news, professional charts and forex tools. These tools consist of PIP calculator, World clock, forex IQ, currency converters and forex education.
Forex online trading is a mental game of selling or buying a currency. Forex demo account simply work like a real account. It gives a brief idea on how the market moves over time. This account will help you in buying or selling orders, managing stop loss and tap profits, and limits as well as functionality.
Getting started with Forex demo account:
Installing software - Many Forex trading web sites offer free demo software. You can access one such web site and download the software.
Open a trading account -After registering on the web site, you receive the username and password through e-mail. The site will also give you systematic instruction on usage of the demo account software.
Dealing rate window - After the registration process, you can access the dealing rate windows that contain information on exchange rate of every currency pair. Every currency is defined in three-letter abbreviation. The forex accounts offered by the web site list the latest trends followed by the currency.
Sell and buy - The currency window contains five digit numbers on the side of currency pair. The first currency in every pair is the base currency. These digits are buying and selling rates. Online trading, generally, is selling base currency for buying secondary currency. If you are new to online trading, then forex demo accounts are crucial for understanding the buy and sell rates that are basic of online trading.
High and low - Next to currency rates are high and low rates that represent bid and ask rates. Bid rates are offers for purchase of currency and ask rates are offers to sell the currency. If you are interested in buying a currency, place bid rate and if you want to sell a currency, then place ask rate. Forex demo account is the best way to learn the technique of Bid/Ask rates.
Stop loss and limit - With the help of forex account you can prevent losses by stop loss option, which is required if exchange rate falls more than pre-specified level. Limit order option helps in locking the profits if the exchange rates hit the desired rate.
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