Demo accounts: what they teach and where they lie
What you learn in 3 minutesA demo account shows the same price chart as a live account, so the arithmetic is honest: if EUR/USD moves 20 pips on 0.10 lots, the profit or loss is the same number on both. What a demo cannot show is how the order actually fills when the market moves fast, and it cannot show how it feels to watch real money leave your account. This lesson uses a chart-first view of a fast move to separate what a demo teaches from what it hides.
20 pips on 0.10 lots: ₱1,085 on demo, less in a fast market
| Step | Amount | Note |
|---|---|---|
| Position size | 0.10 lots | One tenth of a standard lot of EUR/USD. |
| Pip value on 0.10 lots | ₱54.25 per pip | One pip on one standard lot is 10 units of the quote currency, so 0.10 lots is 1 unit; at 1.0850, 1 unit is about ₱54.25. |
| Move on the chart | 20 pips | From 1.0850 to 1.0870, measured on the chart. |
| Demo result | ₱1,085 | 20 pips x ₱54.25 per pip, with no slippage. |
| Live result with 3 pips slippage | ₱922.25 | 17 pips x ₱54.25 per pip; the order filled 3 pips away from the price on the chart. |
Brokers may round the pip value, charge a spread or commission on top, and quote a different fill in a fast market. These charges vary between brokers.
The mistake people make here
The common mistake is to treat a demo fill as a promise. On a demo, the order often fills at the exact price on the chart, so the arithmetic looks clean. In a live account during a fast move, the fill can be several pips away, and that gap changes the result. Use the demo to learn the platform and the pip arithmetic, then check the live spread and execution notes before risking money.Check yourself
On 0.10 lots of EUR/USD at 1.0850, what is the pip value in pesos?
One pip on one standard lot is 10 units of the quote currency. On 0.10 lots that is 1 unit. At 1.0850, 1 unit is about ₱54.25, so the pip value is about ₱54.25.
If the chart shows a 20 pip move but the live fill is 2 pips worse, what is the result on 0.10 lots?
The move counted is 18 pips. 18 x ₱54.25 = ₱976.50, before any spread or commission.