Market basics
What is Paper trading?
Also called: Virtual trading, Simulated trading
Hinglish mein padhein: Paper trading kya hai?
Paper trading means practising buying and selling with virtual money on real market prices, so mistakes cost nothing.
It lets you learn order types, position sizing, charges and the discipline of stop-losses without risking savings.
Paper results flatter real results: there is no fear or greed with virtual money, and fills in a simulator are approximations. Treat it as practice, not proof that a strategy works.
Related terms
- Trading accountA trading account with a SEBI-registered broker is what you use to place buy and sell orders on the exchange.
- Stop-loss orderA stop-loss order automatically exits a position when the price reaches a trigger level, to cap the loss on a trade.
- Position sizingPosition sizing decides how many shares to buy so that, if your stop-loss hits, you lose only a planned slice of your capital.