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Prop trading

Simulated trading

By Jarosław Wasiński • Published: • Updated:
Trading recorded by software without the corresponding orders necessarily being executed in a live market. Prices, fills and costs depend on the simulator. Some programmes pay contractual rewards based on simulated results, but this does not turn the simulated account balance into withdrawable money or establish a universal legal or tax treatment.
Example.

A simulator hypothetically fills an entire order at the displayed price. On a live account, the same size may be partly filled or rejected. The difference does not prove a strategy error, but requires separate assessment of execution assumptions.

What is simulated

The engine records positions and results without necessarily trading with an external counterparty. The feed can be live while the fill model is simplified. Real data does not make every execution real.

Costs and constraints

Check spread, slippage, commission, financing, latency and intrabar data. Omitting a charge overstates comparable results. Evaluate live alignment at similar size and conditions.

Practical purpose

Simulation teaches rules, platforms and records without financial losses on the positions themselves. Programme fees and time remain real costs. A paid programme can provide contractual remuneration distinct from the demo balance.

Primary source checked 11 October 2026: www.fsma.be.

FAQ

Does a demo using a live feed trade in the market?

Not necessarily. Price source and execution method are separate questions.

Can simulated profit be withdrawn?

Normally the demo balance is not withdrawable. A separate programme may create contractual reward rights.

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Jarosław Wasiński

Editor-in-chief, ForexMechanics.com • Macro & FX analyst

Independent analyst and practitioner with over 20 years of experience in financial markets. Actively involved in Forex since 2007, with a focus on fundamental analysis, OTC market structure, and disciplined capital risk management.

  • Creator and editor-in-chief of MyBank.pl, providing reliable financial education since 2004.
  • Author of hundreds of in-depth market commentaries, structural analyses, and educational materials for traders and investors.
  • Advocate for market transparency, promoting education grounded in hard data and institutional reports (BIS, ESMA, CFTC).

All content is educational and informational only – it does not constitute investment advice or a recommendation. Remember: leveraged trading (Forex/CFD) carries a high risk of rapid capital loss.