Paper trading is a simulated market environment where traders can buy and sell using "fake-money" instead of real money

helping them to test strategies and gain confidence before entering the live market

The term "paper trading" comes from the stock market,

stock traders would write down their desired buy or sell prices ,

Paper trading provides a risk-free environment to test trading strategies

without the significant consequences on their overall financial situation that live trading may entail

ultimately helping them become more profitable in the long run

ultimately helping to improve their real trading performance

Matching the paper trading account balance to the live account balance