Hi, I’m fairly new to all this, I opened my first demo account last night
I’ve gotten into the hang of analysing charts and making prediction and I think it’s something that will come in time but I haven’t fully got my head around the value of money I’m dealing with.
This is a demo account, I initially got 200 gbp and made a few trades, than closed a couple to get me £15.95 in profit like in this picture (I think it’s £15.95 in profit), I just closed some more to get £255 where it says balance! Did this mean I have actual £55 and can I withdraw this at any point (obviously on a real account not a demo)
On a real account you can withdraw as much of the capital as you wish at any time. But if you withdraw too much and there is insufficient margin to fund your open positions, the broker will start closing these down and cancelling new orders until the margin requirement is met again.
The other disadvantage to withdrawing capital is that you undermine your own compounding advantage. If you deposit £1000 into an account and grow it by 100% in a year you will have £2000 obviously. If you leave the account alone and keep trading and increase your capital by another 100% each year, you will double your account every year and after 10 years you will be a millionaire.
But if you withdraw your profits every year you will still only be making £1000 a year for the rest of your life.
Thankyou for your response, I see what you mean, I will most likely withdraw a little bit at a time but keep a large sum still invested.
Because im new ill probably just start of with £500 or so and play around as Its not really an issue if I lose out on it and won’t withdraw. I was just unsure if the “balance” represented the true value I’ve made as I’ve seen from peoples youtube video when they invest 0.01 in “volume” it was actually $1000 ??
Was a bit worried incase I got it wrong and I ended using going into minus $1000’s !! Thats were I got quite confused tbh
