BasicsBeginner
Paper trading means practising buying and selling with pretend money instead of real cash. Trades are recorded at real market prices, so you can test a strategy, learn a platform and build good habits without risking your savings. The drawback is that it leaves out the emotions of trading real money, so results often look better than they would live. Many traders paper trade first, then move on to small real positions.
Related terms: Backtesting Position Size
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