You might have heard about demo trading back when you first set up your binary options account. If you’ve never used this feature, there’s a lot of potential that you are missing out on. Demo accounts give you an opportunity to use your broker’s software for free in real time. Whether you’re using the demo account for practice, or just familiarizing yourself with the platform, it is a risk free way to gain a little bit extra experience.
Ideally, the demo account is most beneficial when you are setting up a brand new account and have just made your first deposit. Most binary brokers will only allow you to trade with the demo account if you have made a real money deposit, but that doesn’t mean you need to use your cash. The trick to demo trading, though, is that in many cases you can’t just click on a few buttons and have access to it. Most brokers force you to specially request a demo account through customer service. This is easy since the majority of sites have instant access to their help staff, either through direct online chat, phone, or email. Just contact one of these professionals, and they will walk you through the process.
The big issue that most people have with binary option demo trading is that the accounts are offered on a limited time basis only, and they really don’t offer you any sort of long term stability. Trading with a Good Broker, but will only let you keep it open for 3 days. At the end of the three days, you can either trade with real cash, or close out your account and withdraw your deposit. In this sense, it’s more of a way for you to test out the platform and not test out new strategies.
You can test strategies, though. The obvious issue is that no long term conclusion can be found on whether or not that strategy will be profitable for you or not, but it does allow you to figure out the nuts and bolts of actually executing the trades. It is a small consolation, but it can save you a lot of time and energy down the road. It allows you to see if the strategy is something that you can be successful with, and it lets you get a small glimpse of what you need to do to keep being profitable with this new strategy. For those experienced traders that want to try something new, this is a good way to prepare yourself for the technicalities of what has to be done.
Demo trading is a good idea for each and every trader, but only if you use your time well. For example, demo accounts are timed. If you initiate your account, and then only use it a couple times, you are not going to get anything out of it. Don’t start with the demo until you can devote serious time to it. Also, make sure that you try every aspect of the platform. Test out the call and put options, but also look at any sort of exotic Trading with 24Options. If there are boundary or one touch options, test them even if you don’t think you will be using them. This way, if you do ever need to use them, you’ll have a rough idea of how they work.
This method of learning is the best way to avoid mistakes on your part when you begin trading for real on a new site. It allows you to use the site’s software platform and work out any kinks that you might experience before actual cash is on the line. It lets you see exactly what you need to use the software quickly and correctly. This is a skill that you will need when you start trading quickly with your own cash. In the heat of the trading day, confusion can cloud your thought processes, and having a solid idea of how to use the platform flawlessly will make it that much easier.