Trading in binary options opens wide opportunities for the trader to obtain quick profits before the trader. For today, this financial site is considered the most liquid, since using proven strategies allows you to increase your income in just a few minutes.
But trading binary options with maximum benefit is possible only for experienced traders, beginners are recommended to practice on demo accounts. After all, it's foolish to merge your deposits, hoping only for luck, when it is possible to test all the bids at the expense of the demonstration platform system.
What is a demo account?
In other words, it is a training ground with virtual money, functionally almost coinciding with the real one. It is built on the same platform, there are the same basic assets, identical tools, and the quotes offered for trading are also presented in real time and on the same conditions as are offered to traders on real accounts.
The only difference is that all transactions are carried out on virtual money, which are available on any demo account when it is opened.
What are the advantages of a demo account?
In addition to the fact that you can not risk your real money, the training area has several advantages:
• you can get acquainted with the features of the trading platform and broker's offers. The presence of a training ground with a demo account indicates the high professionalism of the broker, which should be taken into account when choosing a particular platform;
• You have the opportunity to practice, test all the options for trading, which you have already read on the Internet or watched on the video, to work out your own earnings strategy.
The success of binary options trading consists of several factors:
• choosing the correct timeframe;
• Selection of the necessary market conditions (trend, consolidation);
• the correct definition of the volume of a specific transaction.
That's why there is a demo account. With it, you can develop your trading plan and determine the rules for entering the market.
And at the moment when you decide to go to a real account, you will have your own dozens of time-tested trading strategy.
Are there any drawbacks to trading on a demo account?
A novice trader, practicing his skills on the training ground, gets a smart opportunity to trade binary options without the risk of losing his personal money. But in the case of successful deals, it also does not receive real profits, only an increase in the amount of the virtual deposit.
In addition, those newcomers who linger on demo binary options for more than a month, may because of the lack of risk to lose the "market sense". That is, due to a decrease in mindfulness and caution, deviate from the strategy, which prevents trade in the real market.