Trading account

Trading account

To be able to make trades, traders need a trading account at an online broker. As a concept, this is similar to a bank account.

Normal trading accounts hold real money. However, there are also demo accounts that allow you to try online trading without putting your money on the line.

Depending on the broker, your trading account allows you to trade all kinds of financial instruments, such as currencies or stock market shares.

A trader's account is a crucial part of their trading strategy and risk management and can have a significant impact on their overall ability to profit from the financial markets.

Some traders manage more than one trading account — this is more likely in a situation where the trader is employing more than one strategy and needs to separate their financial instruments to avoid confusion.

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