METATrading Academy

Risk management

Paper tradingnakli paise se practice

Practising a strategy with simulated money, recording entries and exits at real market prices, to learn the process before risking capital.

Paper trading means placing trades without real money, either on a simulator or literally on paper, at the actual prices the market shows. You record every entry, stop loss, target and exit as if it were real. It is how you learn the mechanics of order types, lot sizes and margins, and how you test a strategy in forward time without paying for the education in losses. Suppose you paper trade Nifty options for a month, taking every signal from your rules; the log shows whether the rules make sense and whether you can follow them. Its limitation is that nothing is at stake, so the fear and greed that wreck real trading do not appear. This is why the step after paper trading is very small real size, not full size. If you cannot make paper trades work, real money will not fix that.

Lessons that use this term

Video
Risk7 min read

Leverage and spread, in plain language

Leverage makes a position bigger than your cash. The spread is the gap between the buy and sell price. One multiplies your results, the other quietly charges you on every trade.