Demo vs live
Demo teaches mechanics and costs, not the psychology of a real loss. Live teaches discipline, but you pay for mistakes — the move is a change of rules.
| Criterion | Demo | Live |
|---|---|---|
| Capital | Virtual — a mistake does not hurt | Real — a loss is a lesson, and a cost |
| Psychology | Does not train the reaction to a real loss | Trains it — which is why it needs a plan before you start |
| Costs | The same spreads as live (if the broker shows them) | Real overnight costs, commissions, slippage |
| Role | Learning the mechanics and testing a setup | Executing the plan you learned on demo |
Worked out on one example
The same plan on demo and on live, 20 entries. The difference in the result comes from one cost item that demo never shows.
Example assumptions
- 20 entries — the pass criterion from the lesson.
- EUR/USD, 10,000 units, an assumed rate of 4.00 PLN (Polish złoty) per USD, a stop of 25 pips.
- On live, average slippage of 1.5 pips on entry; on demo, zero.
The arithmetic
- Risk of one entry 25 × 4 PLN = 100 PLN
- Total planned risk 20 × 100 PLN = 2,000 PLN
- Slippage on one entry on live 1.5 × 4 PLN = 6 PLN
- Slippage across 20 entries 20 × 6 PLN = 120 PLN
- Slippage as a share of planned risk 120 PLN / 2,000 PLN = 6%
With the same decisions, demo shows zero slippage and live shows 120 PLN. That is why the pass criterion is 20 entries in line with the plan, not a positive demo result — the demo result does not contain this cost.
The arithmetic rests on the assumptions stated above — it is not a forecast and not market data. Put in your own numbers: Pip value calculator.
This comparison describes differences in mechanics; it does not recommend a choice. The fit depends on your horizon, capital and risk tolerance. Educational content — not investment advice.