What is Simulated Capital?
Simulated capital is account balance that exists in a demo or simulation environment rather than as real money in a live brokerage account. Orders are filled against simulated prices, so the profit and loss is tracked by the firm's software, not settled in a real market. Many retail prop firms run evaluations, and sometimes funded accounts, on simulated capital and pay traders out of their own revenue.
Why Simulated Capital matters
Knowing whether you are on simulated or real capital tells you where a payout actually comes from.
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