Paper Trade

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Dictionary Says

Definition of 'Paper Trade'

Simulated trading that investors use to practice mimicking trades (buys and sells) without actually entering into any monetary transactions.
Investopedia Says

Investopedia explains 'Paper Trade'

Paper trading is a good way to learn the ropes without risking any money. You can do it simply by pretending to buy and sell stock, bonds, commodities and mutual funds and keeping notes of paper profits or losses. Or you can open an account with an online market simulator.

Related Definitions

  • Paper Profit (Paper Loss)

    Unrealized capital gain (or capital loss) in an investment. It is calculated by comparing the market price of a security to the original purchase price. Gains or losses only become ...
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  • Trade

    A basic economic concept that involves multiple parties participating in the voluntary negotiation and then the exchange of one's goods and services for desired goods and services that ...
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  • Backtesting

    The process of testing a trading strategy on prior time periods. Instead of applying a strategy for the time period forward, which could take years, a trader can do a simulation of his ...
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