Roboforex company allows to try trading in risk-free mode using demo accounts on Robooption platform.
To open demo account, you have to click on the button “Demo account”:
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Then you will have to fill in all required forms:
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After that you will receive confirmation code on email – fill in that code on this page:
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Finally, you will observe web page with login and password – I recommend to save this information in a secured place, it will not be duplicated on email for the sake of safety.
Many traders will confirm that trading on demo account (either on options or traditional currency pairs) has its advantages and drawbacks.
Of course, to study the platform, it is essential to learn all the basics – what is expiration date, how “call” and “put” options are distinguished from each other and other features of binary options.
Binary options are very simple in comparison to traditional options, that's why trader with any level of experience would easily learn how to trade it.
Yet, there are also drawbacks of “demo trading”. It completely excludes psychological component from trading, that is one of crucial factors distinguishing success and failure.
I will provide couple of examples:
1. Trader had created and tested scalping strategy for short-term 180-second options, short period of testing it on demo account has shown that his strategy is robust. However, after switching to real money account, trader recognizes that it is tough to execute this strategy for him. Necessity to execute multiple trades increases pressure, finally he/she has series of errors and shifts probability of success against him. Trading on real money generates stress and our most dominant personal characteristics always rule the game. In this case trade has “sprinter-like” type of attention and should better had traded on long term options, picking trades near support/resistance areas. Had he tested his strategy on small real account, he would had avoided large losses and disappointment.
2. Trader has tendency to overtrade, yet always promises not to do that since “next monday”. Yet he has a personal strength to stick to a winning position. Testing strategy on binary options on demo account allowed him to avoid overtrading and filter most of his bad trades, yet switching to real account showed that he go back to overtrading, making bunch of “testing” trades. We tend to gravitate to our dominant personal characteristics in conditions of stress and disorder. Had he ability to hold position overnight and stick to it, he would be able to cover his losses via large winner, but considering that binary options don't allow to “let profit run”, it was impossible – his personal strength was unemployed while he was fully fragile to his personal weaknesses. Had he tested his trading on small real money account, he would have recognized this tendency at a small cost.
So, it's important to learn basics of binary option trading with demo account, but it's not recommended to stick to it. After all, everybody has come here to earn real money and trade real money. Be sure you will execute your strategy properly on a real money account.
