Not trading with real money. All transactions are only imaginary with a record of profit and loss on paper.
                                                            
                                                     
                        
                                                
                        
                        
                            A popular term used to describe trading without using real capital. Useful in testing trading methods and developing new ones.
                                                            
                                                     
                        
                                                
                        
                        
                            A popular method using real-life trade circumstances and trading with imaginary trading funds.
                                                            
                                                     
                        
                                                
                        
                        
                            Paper trading (sometimes also called "virtual trading") is a simulated process in which would-be investors can 'practice' investing without committing real money.