As Binary Options Trading is ascending to a height of popularity, so does the Demo Accounts. From the beginners to the experienced traders, all are getting benefits from the Demo accounts of different trading sites. A newcomer is always baffled by the different types of options and the different methods of trading. And trading on a demo account for some time is the only way to make the concept of trading, crystal clear. This article will help you to enlighten yourself about all the facts, that you should know about trading on a demo account.
How Do Demo Binary Options Account Work?
A Demo Binary options Account is a kind of introductory process towards the binary options trading. Whenever, you sign up to any binary options trading site and open a demo account, you are permitted to place as many types of trades you find in real trading. However, being an owner of a demo account, you don’t have to pay the piper— i.e. nobody will force you to make deposits. Therefore, all your wins and losses will be virtual, even not a 1% real.
From where then the money would come for virtual trading? This question always runs through a beginner’s head. Once you have opened a demo account on a trading site, you will be given a certain amount of demo credits to trade with. While trading on a demo account, you can choose any asset— commodity, indices, any currency pair, stock, and shares, etc., to trade with. Do not think about your demo credits; they can be restocked again.
So, folks, if you are thinking about to jump on the wagon of the Binary Options Trading, then, first of all, create a demo account on a respective trading site. A demo account will give you experience, you will need in future.
How do I set up a Demo Account?
The process to set up a demo account on a binary options trading site is very simple and easy. The whole task will take only a few minutes. You have to choose a trading site, first. We have a list of such sites, that you may look out. Visit any of those sites, and click on the demo account button. You have to fill in all the necessary details about you and an account will promptly open up for you.
Once you have filled in the registration form, your username and password will be sent to the inbox of your e-mail account. And now, all you need is to just log into your demo account.
Signing into your demo account for the first time, you will discover that, it is already pre-stocked with demo credits. So, go and check out all the binary options available there. The moment you find any of those options interesting, you are free to place a trade with it. Placing a trade is not a difficult task to do; just click the Put or the Call button, based on the prediction that whether the value of the underlying asset, is going up or down. After this, decide how much of the demo credits you want to spend on the asset. And click the OK button to confirm your trade. Your trading has been placed now. If you use the main menu to get the access of each trading market, then easily you will be able to navigate around the trading platforms.
Though it is a demo account, you should keep tracking of your previous trades, for your own good. The History button on a demo account will provide you a complete overview of your previously placed binary options trades—you will see all the losses and profits, you have made.
What are the benefits of using a Binary Options Demo Account?
A binary options demo account is nothing but a free educational tool— offering some initial ideas and techniques of trading. And who does not love to have something for free? There is no obligation to register for a demo account. The most interesting part is that you do not need to deposit fund while using a demo account. So, there will be no risk of financial loss. The whole process is like a game playing. It is like the demo you play before buying a game for real. So, the binary options demo account gives you the idea of what you are up to; the basic ideas of trading, and the methods to win a trade. To conclude, the demo accounts are powerful and effective implementations of brokers, to attract the users to their trading sites.
But, trading on a demo account is not a real-life trading. The risk factors are also limited and minimal. So, the opportunity of learning here is limited. The method of trading in a non-viable atmosphere often gives birth of some overweening traders; fall on one’s face, after stepping into the real binary options trading.
Above all, there are so many factors to consider while signing into a demo account. You should keep in your head all the advantage and the disadvantage of trading on a demo account. And try to extract the benefits as much as you can. Once you have gotten the grip over trading, you may leave the demo account, and start trading for real.