Paper Trade
Categories: Trading
You know that website where you message with bots while staring at pictures of purported Russian models? Call that paper dating.
The financial market equivalent is called paper trading. It involves simulated transactions. It lets you try out strategies and practice the process without putting actual cash at risk. It's like going to the driving range...or like playing a gambling video game instead heading to a casino.
Many trading platforms and financial software offer simulation programs. These systems often use historical data and algorithms to replicate market conditions. It allows traders to test potential game plans to see if they can return the profits that the investor predicts.
![](https://media1.shmoop.com/images/finance-glossary/paper%20ream.png)