An account is offered by us which carries the fake money, such that the customer can experiment on the trading platform including its features. In this way, the customer gets a glimpse of the account and the real account gets familiar when the customer involves in that. Hence, a trader can get a general idea of the company’s software and the market. However, the demo account will never show the same results as the real live trading account.
Moreover, there are things that are carried while testing out systems on a demo platform to make the realistic result as possible:
Accurate Assumptions- Sometimes, the offer placed is assumed that it covers the offer and does not fill the order. But the demo shows the order is filled but in actual, is not. While for the thinly traded stocks or low volume stocks the buffer is expanded.
Account Slippage- 1% of slippage is assumed on the market orders, on the high volume stocks. This gives a large slippage in low volume or on volatile stocks.
Trade with Modest capital- If you can, then trade with the same amount of capital on the live market as well. In case, the demo doesn’t allow then the trade only a fraction of the account capital. Don’t access any type of fund from the demo capital which is directly excessed to live trading fund.
Personal Involvement- Act as if the money is real. The emotions of monitoring and trading affect psychologically while emotions are perceived. As long as, the demo capital doesn’t make you bankrupt or wealthy but it can be felt by the trader. The method of doing and holding the platform is to enjoy to follow the trading plan, to give yourself a small reward when a trading plan is followed.