Paper Trading

Written By
Paul Tracy
Updated June 2, 2021

What is Paper Trading?

Paper trading is simulating market trading (buying and selling). 

How does Paper Trading work?

Investors can practice trading by simulating securities purchases and sales without actually executing transactions with money.   Paper trading can be done using real-time online market simulators, allowing investors to practice placing orders, executing transactions, monitoring market and portfolio activities, all without the risk of losing (or gaining) money.

Why does Paper Trading matter?

Investors can use paper trading to learn about the markets and the mechanics of simple and complicated trading techniques without the risks associated with investing in the market.        

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