A paper trading account, also known as a virtual trading account or a simulated trading account, is a practice account used by investors and traders to simulate real-time trading without using actual money. It allows individuals to gain hands-on experience in trading stocks, options, or other financial instruments in a risk-free virtual environment.

In a paper trading account, users are provided with virtual funds to execute trades based on real market data. The account mimics the functionality and features of a real trading account, including placing buy and sell orders, monitoring price movements, and tracking portfolio performance. However, the transactions and profits or losses incurred in a paper trading account are not real and do not involve actual financial consequences.

Paper trading accounts serve as a valuable learning and testing tool for beginners to understand the dynamics of the stock market, practice trading strategies, and familiarize themselves with trading platforms. It allows individuals to gain confidence and refine their skills before transitioning to live trading with real money.

Check out this informative tutorial on setting up your paper trading account: Link to Video Tutorial.