📖 Financial Lexicon Term
What is Demo Account?
A risk-free practice account provided by brokers using virtual money. It simulates live market conditions and is ideal for beginners to practice strategies.
Detailed Explanation
A Demo Account uses simulated capital but mirrors real-time market price movements. It serves as an essential training environment where beginners can learn execution, testing strategies, and risk math without losing real funds.
💡 Practical Trading Example
A novice trader opens a $10,000 virtual demo account to practice placing stop-losses and targets on EUR/USD.