what is a paper trade 
a paper trade is a simulated trade that allows an investor to practice buying and selling without risking real money the term paper trade dates back to a time when aspiring traders practiced trading on paper before risking money in live markets well before online trading platforms became the norm while learning a paper trader records all trades by hand to keep track of hypothetical trading positions portfolios and profits or losses most practice trading now involves the use of an electronic stock market simulator which looks and feels like an actual trading platform 