Paper trades are simulated trades that let aspiring investors and traders practice buying and selling without putting their own money at risk. The expression stems back to a time when ambitious traders would train on paper before putting their money at risk in real markets (before the ubiquity of online trading platforms). While learning, it is recommended to a journal. Therefore a paper trader manually logs every transaction to Toto keep track of simulated trading positions, portfolios, gains and/or losses. The majority of practice trading nowadays includes the use of a simulator that looks and feels just like a real trading platform.
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