I am a beginner trader and have opened a demo account with MT4. I have someone questions regarding the profit (even though it is just demo) I see in one case i bought EURUSD at 1.17127 and sold at 1.17261. PIP increase of 134. My profit was $35.69. I am not sure if I traded at Standard Lot or Micro based on the profit. Under market execution I entered 0.20. Can someone please help explain how 134 pips = $35 in my case?
My leverage is 100:1 and i started with demo balance of $3000
Do you mean .2 lots? A standard lot is 100K units. So 2 mini lots?
Maybe this will help.
And you got your pips wrong. Your change was 13.4 pips. EURUSD goes out to 4 decimal places
Hey, this really did help! I can’t believe i was confused with the decimal places on the PIPS - sorry!
I now just can’t seem to figure out what lot i am trading in!? if it was 2 mini it would be $2 but that still makes it $26.80 profit not $35.69
You’re doing the right thing, starting with the demo and trying to figure it out. I can see that you’ve already had help and I won’t repeat the information. But you’re definitely moving in the right direction. And that’s what’s gonna bring you amazing results in the end.
I an say that Demo account is the best way to learn forex properly. It will help you to learn all the basics of forex practically and easily.
Demo is good for learning but it’s very different from real trading.
Hello! Please I’m a new member and as well a beginner. How is demo account different from real account?
A demo account means the account is trading in a virtual trading account without account real monetary risk.
Thank you for your comment. Apart from the monetary risk, is there any difference in the trading experience?
Demo account is the best place to test your skill and knowledge. However, traders cannot learn how to deal with emotion from demo account. There is no real money involve in demo account. So. Trader will feel any emotion at trading.
Demo account is needed to practice your trade strategies and get a complete hang of trading before you start live.
Approx how long did it take you guys here on this thread to grasp the concept of forex and make repetitive profits? I guess I should be more patient in the process but it is a real let down when I don’t understand a certain concept
haha no worries. I did the same before.
Yea the math wasn’t working for me too. Are you sure about all the numbers you posted? Entry and exit and profit numbers? How long did you hold the trade open?
I don’t know about that. I think latency might be different, since depending on your broker, filling the trade could take longer (or faster). And then there’s liquidity. Brokers usually have many different liquidity provides helping to fill your trades (entry and exit). That doesn’t happen on demo. You’ll always get your entry and exit price and SL prices on demo. That’s not a guarantee on live account. And spreads could be different also.
And as somebody else said, why you have real money in your account, most people trade differently than when they’re on demo. You have nothing to lose on demo.
I’m still on demo, not profitable!