Despite visual similarity, unobvious part is completely different. Many profitable demo strategies lose in live because "easy" money are grabbed by arbitrageurs thanks to their speed edge. This is why many novice traders fail and the reason why profitable live trading strategies are so rare...too little opportunities
I'm a beginner in trading and every trader mentions to practice in demo trading before going live. Traders also mention that the demo and live are not the same, why is important to trade in demo account if they are not the same ?
please see my earlier posting. also note that when you are doing demo trading, there is no slippage. when you do live trading, there might be slippage.
It's not because it isn't at 100% the same that demo/sim trading is not important. It's just another step to achieve the final target.
The demo accounts are same as live accounts so that one can practices on the demo and familiar to the platform and conditions while going live.
There is generally 1 tick difference on a Live sim than a live real money account if trading using limit orders. For instance, on a Sim if you are looking to exit a short position in ES say at 3450.75 ..well on a Sim generally once price touches 3450.75 you will have exited your position at that price. However in live trading with a real money account price usually has to trade thru (there are exceptions) 3450.75 to 3450.50 for your limit order to get executed at 3450.75. I am referencing this in regards to using limit orders not market orders.
Or trade with limit orders entry and exits and experience generally a 1 tick difference On execution of orders between a sim and a live money account on a liquid instrument.
I'm new in trading, been using a demo account and learning trading, looking to go live soon. Many traders have suggested that the demo and live are different, would anyone define how different the live is from the demo ?