What is paper trading?
The term “paper trading” comes from the stock market, where investors who wanted to practice would write their investment on a piece of paper and then follow the market movements.
All new traders have certain concerns that come with worries about losing their money. Every type of trading carries risks and therefore brokers offer a variety of tools to master the skills and methods of beginners. One of these tools is called “paper trading” or demo account. Demo accounts are often used by beginners who want to practice and learn how to trade. But experienced traders who want to test new strategies also use the paper trading option. This way they can test risk-free.