There is not a big difference between Spanish and English demonstratives uses.
In Spanish, we say "this" and "that," meaning "that over there." This form is used when the object is more than just a short distance away. Here are the three forms for "this" "that" and "that one over there."

este/this; ese/that; aquel/that over there.

Este coche es nuevo./This car is new.
Ese libro es blanco./That book is white.
Aquella torre is muy grande./That (over there) tower is very big.

It's used in singular and plural, masculine and feminine, depending on the their noun.

cuadro3
	Singular		Plural
	Masculino	Femenino	Masculino	Femenino
Near	este	esta	estos	estas
	this	this	these	these
Medium distance	ese	esa	esos	esas
	that	that	those	those
Far	aquel	aquella	aquellos	aquellas
	that over there	that over there	those over there	those over there

Each demonstrative pronoun also has a neuter form:
esto/(this matter, this thing); eso/(that matter, that thing); aquello/(that matter/thing over there).

¡Eso es increible!/That's incredible! (that matter).
Aquello está frío./That is cold (that thing).

In Spanish, the only difference between demonstrative pronouns and demonstrative adjectives is that demonstrative pronouns have a written accent.
That difference doesn't exist in English: