14 April, 2018

Forex demo account, have fun without getting burned

Forex trading is considered a high risk derivative. There are people who take classes to learn how to trade, yet a 100% rate of success is not fully guaranteed.

What makes Forex so risky?
Unlike stocks, you cannot really queue for a desired price. In order to get into a trade, you have to pay a slight premium be it a Long or a Short. In other words, you are already making a loss by entering a trade. (similar to brokerage fees)
In order to make it big, we need high leverage to secure good profits. Thus, losses will be at the same time well amplified.
It is highly volatile since it is trading off 24 hours (from Sunday 5PM EST till Friday 4 p.m. EST). This is also because currencies are highly demanded in the world’s businesses.

So what can we do if we are interested to learn but do not want to be exposed to financial risks?
For one, there are trading books. However, we will still lack the aspect of hands-on experience simply by reading.

So what you can do is to experience it using a Demo account where you are able to simulate trading currencies with unreal cash.
I have been trying Justforex Demo and Oanda Demo account out to get the real feel of forex risks, and to get used to how their platform and product works.

Since it is a demo account, we can afford making mistakes and learn from them.
Most importantly, you can have fun with it without getting burned!

Below is just a snapshot from Oanda Demo account.

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