Practicing Account

The best way for newcomers to get a handle on what cur-
rency trading is all about is to open a practice account.
Almost every forex broker offers a free practice account to
prospective clients; all you need to do is sign up for one on
the broker’s Web site. Practice accounts are funded with “vir-
tual” money, so you’re able to make trades with no real money
at stake and gain experience in how margin trading works.
Practice accounts give you a great chance to experience the
forex market. You can see how prices change at different
times of the day, how various currency pairs may differ from
each other, and how the forex market reacts to new informa-
tion when major news and economic data is released. You also
can start trading in real market conditions without any fear of
losing money, experiment with different trading strategies to
see how they work, gain experience using different orders and
managing open positions, improve your understanding of how
margin trading and leverage work, and start analyzing charts
and following technical indicators.
Practice accounts are a great way to experience the forex
market up close and personal. They’re also an excellent way
to test-drive all the features and functionality of a broker’s
platform. However, the one thing you can’t simulate is the

emotion of trading with real money. To get the most out of
your practice-account experience, treat your practice account
as if it were real money.