So… ive recently downloaded a demo acount of dealbook360. I really like the chart strategies they have such as the parabolic SAR.
Ive noticed that when I buy a single lot, im automatically charged 30 dollars (at the $10 a pip level). Why am i getting charged this $30?
Also, If I lose $50, then it says my floating account is at $9950. I understand that. But there is also a little bar that says “margin required” and its upwards of $1500. What is margin req?
One last question… on demo accounts, does it use real market data? Or is it simulated?
You should definately go through the school since that would answer all of your questions and make it much clearer. That $30 dollars that you are automatically being charged is the spread which is 3 pips in your case since it $10 a pip. Every pair has a different spread and you pay that up front when you go long, and you pay it when you close a trade if you go short. Margin is the amount of money that you must put up depending on how much leverage you choose when you intiate a trade. It is like a good faith deposit that you get back when the trade is closed, almost like a downpayment on a house. Lastly, most brokers use real live data just pretend money on demo account. Spend a couple of hours going through the school to get a much clearer understanding of pips, leverage & margin.
Thanks for the info. I’ve gone through most of the schooling. However, I find it easier to simultaneously demo trade while Im reading new information. Its an uphill battle…
It is definately a good idea to get use to the platform you’ll be using which will make your studies a lot clearer. I made the mistake over studying for about a year before ever messing with the demo. When I finally did start trading it was like I forgot everything I read because my brain was fried. After a few months of trading it will all become clearer to you but I think it will always be an uphill battle. I’ve been learning it for about 2 years, 3 months live and I’m still fighting it out because I will never give up until I succeed :). Good Luck to you!