Demo trading and live trading are two distinct stages in a trader’s journey. Understanding the differences between the two can help you transition from practice to real trading more effectively. 

Demo Trading: A demo account is a simulation of a live trading environment, allowing you to practice trading without risking real money. Demo accounts are often provided by forex brokers and come with virtual funds that mimic real market conditions. This allows you to test trading strategies, familiarize yourself with the trading platform, and gain experience in a risk-free setting. Demo trading helps build confidence and develop trading skills without financial pressure. However, it is important to approach demo trading seriously, as it provides a foundation for real trading but does not fully replicate the emotional and psychological aspects of trading with real money. 

Live Trading: Live trading involves using real money to execute trades in the forex market. The transition from demo to live trading introduces real financial risk, making it essential to apply the skills and strategies developed during the demo phase. Live trading requires a strong understanding of market conditions, risk management, and the ability to handle emotional pressure.  

When moving to live trading, start with a smaller position size to manage risk and gradually increase your exposure as you gain confidence. Continuously apply the lessons learned from demo trading and adapt your strategies based on real market experiences.