What is Paper Trading?


PAPER TRADING — A paper trade is a simulated trade that lets you practice buying and selling options without committing or risking real money. There are several online trading platforms and brokerages that allow you to practice trade in live markets without real money. Paper trading is a good way to learn the process of trading options and honing your skills. It’s also a good way to test various trading strategies or situations before you are ready to try them for real. The term comes from the time before online brokerages when traders would literally write down and journal a trade idea on paper.




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