Paper Trader or a stock market simulator is a program or application that attempts to reproduce or duplicate some or all the features of a live stock market on a computer so that a player may practice trading stocks without financial risk. Paper trading (sometimes also called “virtual stock trading”) is a simulated trading process in which would-be investors can ‘practice’ investing without committing real money.
This is done by the manipulation of imaginary money and investment positions that behave in a manner similar to the real markets. New investors can practice making (or losing) fortunes time and time again before actually committing financially. Investors also use paper trading to test new and different investment strategies. Stock market games are often used for educational purposes.
Various companies and online trading simulation tools offer paper trading services, some free, others with charges, that allow investors to try out various strategies, or paper trading can be carried out simply by noting down fees and recording the value of investments over time.
The imaginary money of paper trading is sometimes also called “paper money” or “virtual money”
Paper Trader is the default broker in GoCharting.