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5 Reasons Why Most Forex Traders Start With Demo Accounts

by with No Comment Forex

Author:Exness Broker

Forex can be intimidating for newcomers. Often new traders don’t know where to begin, and so either rush in without a plan or alternatively decide against trying out trading at all.

 

Fortunately, Exness offers an ideal way for new forex traders to get started; the Demo account.

In this article, we’re going to dive into some key reasons why most traders start with Demo accounts and why it could well be the perfect way for you to try out forex trading too.

Once you’ve read the article, why not go ahead and open a Demo account for yourself with Exness

Reason One: It’s Risk Free Time and again we speak to new traders who are concerned about the levels of risk they could be exposed to when trading forex. Ultimately, risk management is a technique that needs to be learned through practice.

The best way to do this is through the Demo account. Entirely free to use, the demo account is topped up using virtual funds as many times as you want. This means that new traders can practice in a completely risk free environment, making as many mistakes as needed with zero repercussions.

The Demo account also provides access to all the functionality needed by new traders to learn risk management principles. Then, when they’re comfortable, they can graduate to real accounts with confidence.

Reason Two: It’s Unlimited Many forex trading courses in the market are closed-ended, meaning that new traders have a limited amount of time to learn before they are thrust into the real forex market to fend for themselves.

With the Exness Demo account, however, traders can experiment and learn for as long as they want. If the account runs out of virtual funds, it can simply be topped up in seconds for free.

What’s more, traders can open as many Demo accounts at no cost. This means that they can experiment with strategies, currency pairs, and more across multiple accounts. This allows you to discover for yourself which approaches work best.

Reason Three: Real Trading Conditions Demo trading can be incredibly educational, but only if the trading conditions included are the same as you’d find when trading forex for real. The last thing you want is to gain lots of experience with a Demo account, only to find that the real accounts feature completely different dynamics.

With the Exness Demo accounts, you will trade under virtually the same conditions as one of our real accounts. This allows you to get a sense of what live currency movement across 120+ instruments are like. It also allows you to explore the use of features such as leverage, margin, and spread.

With the Demo account, traders can also try out different account types to find out which one is best for them. These includeMini, Classic, and ECN. Each account has different benefits, and so creating a Demo version is an ideal way to test them out.

Reason Four: Experimentation With the Demo account, you can make use of all the same tools, as well as the same currency pairs, that are accessible with real accounts, meaning you can directly transplant strategies developed in Demo over to one of the real accounts when you’re ready.

One of the major outcomes of this is that many well established traders still operate Demo accounts. They do so because they still need a safe space in which to experiment with new strategies and approaches. Say for example a trader decides to try out a indicator. Either they can do so in the real market, and possibly risk significant amounts of capital, or alternatively can do so in Demo, risk free.

As you develop your skills as a trader, the Demo account will always be there for you to experiment with.

Reason Five: Expert Advisors Expert Advisors (EAs) are one of the great benefits of trading with the MetaTrader 4 and MetaTrader 5 platforms through Exness, and with Demo accounts you can test and experiment with them to your heart’s content.

Essentially computer programs written by experienced traders, EAs can make trading decisions for you based on historic price data analysis. While EAs allow many traders to take a hands-off approach to trading, they are not without their failings. Using EAs means you put your money in the hands of an algorithm, and you should absolutely test it out before you commit to using it for real.

With the Exness Demo account you can use EAs in exactly the same way as you would with a real account. With new EAs being developed all the time by the MetaTrader community, the Demo account is the perfect place to find the right one for you.

Conclusion The Demo account is a great tool for new and experienced traders alike who are looking to develop their skills, experiment with new strategies, and test EAs, all within a completely risk-free environment.

Open a Demo account today and start your forex trading journey the right way!

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Bitcoin Technology: Under the Hood

by with No Comment Forex

Learn Forex Trading

Author: Andreas Thalassinos

In 2008, Satoshi Nakamoto proposed a peer-to-peer cash payment system that would allow people to transact directly with each other, without the need of financial institutions. Since then a lot has been said and written about bitcoin, the new digital currency. The purpose of this article is to shed some light on the jargon surrounding the technology and, more specifically, the computer network that facilitates the payment system.In computer networks there are usually two main models: client/server and peer-to-peer. The difference is the role and functionality of each participating computer (or node, as it is usually called).

Client/Server

In a client/server model, there are two discrete entities; the server and the clients. This is a centralized environment where the applications, files and other resources are stored on a central computer – the server. The server acts as a central authority that provides services to the rest of the nodes in the network. It shares information and resources with the clients. All clients are connected to the central server. This model is prone to security breaches, hacks and breakdowns as the server constitutes a single point of failure. If the server is faulty, it can bring the whole network down.

Peer-to-Peer (P2P)

On the other hand, a peer-to-peer network is a decentralized model – in other words, there is no central authority or server. Instead, each node acts as both server and client, where all nodes are equal. BitTorrent is perhaps one of the most popular P2P networks for file sharing. While peers are vulnerable to security attacks (which the Bitcoin network takes care of through its protocols), the advantage is that scalability is easy. A new computer may be plugged into the network and be up and running once in sync with the network.

As the network expands, its computational power expands as well. Furthermore, a faulty computer will not jeopardize the integrity of the network. All computers are interconnected and communicate with each other constantly – this way, the propagation of messages continue uninterrupted. This is perhaps the greatest advantage P2P has – it’s a fault tolerant network.

Distributed System

The Bitcoin network follows a distributed application model, where the work load is spread among the participating nodes. When “digging” into computer networks, one will come across the Byzantine Generals Problem where consensus is the goal. In order to maintain reliability in the network, consensus must be reached among the participating computers. 100% consensus is, of course, ideal but not always feasible.

Byzantine Generals Problem

A group of Generals have surrounded an enemy city. They have to attack or retreat based on the Commanding General’s orders. It is imperative for the success of the campaign that there exists consensus among the Generals. Messages are passed from the Commanding General to the Generals through unsecure and penetrable networks. Even worse, a number of the Generals and/or even the Commanding General himself may be traitorous. As long as the Commander is loyal and the number of traitors is not greater than one third of the Generals, then consensus may be reached to attack or retreat at the same time.

In a nutshell, there must be 3t + 1 Generals where t represents the number of traitors.

It is obvious that General 1 will receive contradictory information from the Commander and General 2, who happens to be a traitor. In this scenario, it is not possible to achieve consensus (which is more than 50% in favor of attack or retreat).

The Bitcoin system faces the same type of problems as the Byzantine Generals. In order to bypass it, Satoshi Nakamoto introduced the proof-of-work concept. When sending a message, the message is hashed and a nonce is sent to all nodes to verify the proof-of-work. Every message (i.e. block) is chained and as a result it is close to impossible to tamper with it.

Conclusion

Bitcoin follows a decentralized, peer-to-peer networking and distribution model. Consensus is needed among the nodes to ensure smooth operation of the network. A number of “bad” nodes are not capable of altering the blockchain due to the implementation of proof-of-work.

Open a Demo account and test your skill.

 
 
 

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