Glossary of terms
Virtual trading is what werefer to when we talk about demo account trading. A demo account is a virtual trading platform used by novice traders (or experienced traders looking to practice new strategies) before committing to a live account to ensure they feel relaxed and happy with the trading platform or new trading strategy.
A demo account helps you get familiar with the dynamics of the market and how orders are placed. Different financial instruments will be impacted by different factors. So, use a virtual trading platform to start slow and be patient.It also helps you determine whether such investments are well-suited for your trading style and financial goals. Always, remover avoid trading too many financial instruments at once, especially if you are new to trading.
Remember that successful trading is about making informed and confident decisions, assessing the potential, and understanding the risks involved. Every market has its idiosyncrasies that one learns over time. Having too many financial instruments may make your portfolio extremely difficult to manage or even unmanageable.
Practice and expertise are needed to make trading work for you. You need to understand how to manage your emotions and also familiarise yourself with the stop-loss and take-profit functions available on your virtual trading platform.Key Takeaways
- Good traders do not exist – only good risk managers!!!
- Virtual trading is what we refer to when we talk about demo account trading.
- A demo account helps you get familiar with the dynamics of the market and how orders are placed.
The commodity market is characterised by high near-term volatility. Sometimes, even a relatively small incident can cause a large swing in prices. In 2020, crude prices plummeted to the point where there was more supply than demand and companies were paying people to take the oil off their hands. Especially in Saudi Arabia, which is among the world’s largest oil-producing countries.
The volatility calculator helps traders employ money management strategies by reducing their position sizes at times of high volatility. It computes historical volatility in real-time for each currency pair using past information on exchange rates for several timeframes which can range from one week to one year.Key Takeaways
- Volatility is the measure of price fluctuations on an asset over a given time period.
- Do your research, it is important to gain some knowledge of trading and the factors impacting market prices.
- A volatility calculator helps traders employ money management strategies.