A firm offer entails real funds, risks, and profits/losses. Simulated accounts offer virtual funds for users to practice platform operations without actual gains or losses.
In foreign exchange trading, real offers and simulated offers are two commonly used trading methods.
Real trading refers to the real trading environment where you use your own funds to engage in the real trading of foreign exchange. This means that you need to first open a real foreign exchange trading account, deposit a certain amount of funds into it, and then conduct actual trading operations through the trading platform. Real trading is real, so you will bear the real trading risks and may gain profits or suffer losses. Real trading allows you to truly experience the volatility and risks of the foreign exchange market, helping you become a more experienced trader.
Solid transactions are mostly conducted in US dollars. When people deposit money through bank cards, the system will automatically convert RMB into US dollars, and the exchange rate for each foreign exchange platform is different.
Simulated trading is a simulated trading environment, also known as virtual trading. You can conduct simulated trading by opening a simulated account, which will provide virtual funds for you to conduct trading operations. Simulated trading usually uses the same trading platform as real trading, but the transactions you make will not truly affect the market, nor will there be real capital gains and losses. The purpose of simulated trading is to enable you to conduct simulated trading operations without actual funds in order to familiarize yourself with the functions and operations of the trading platform and to practice your trading strategies and skills. In simulated trading, you can try different trading strategies, observe market fluctuations, and understand trading changes and risks without worrying about actual capital losses.
Virtual trading is also conducted in US dollars, but this money is not really fake funds, so everyone doesn't feel distressed when trading. Virtual trading is all fake, so the platform will not throw orders into the market. Note: There may be differences in the prices of simulated and actual offers on some platforms.
Both real and simulated trading have their own advantages and uses in foreign exchange trading. Real trading allows investors to truly experience market fluctuations and risks and obtain true trading results and profits. Simulated trading allows investors to practice and test in a risk-free environment, familiarize themselves with the operation of trading platforms, try different trading strategies, and improve trading skills and confidence.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.