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Demo vs Live Execution

A demo fills off the feed with no counterparty; a live account meets finite size and real latency. The gap is widest at news and at the session open.

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Demo and live accounts run different execution paths, and the difference is a design fact rather than a defect. A demo fills against the price feed with no counterparty, so it never requotes, rarely slips and always fills the whole order at the quote on screen. A live account routes to a dealer or a liquidity pool, where the size available at that quote is finite and network latency is real. The consequence is that a strategy validated on demo can lose its edge in its first live week with nothing changed except the fills. The gap is widest exactly where it hurts: at the news release, at the session open, and on any order large enough to consume more than the top of the book. Running the same setups live at minimum size for a few weeks, and comparing the fills, is the only honest calibration.

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How Execution Models Work: ECN, STP and Market Maker

Market maker, STP and ECN describe where the other side of a trade comes from — and what each model changes about spreads, requotes and order handling.

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