If you are new to the trading world, it is only a matter of time before you realize that the stock market is a vast and unpredictable environment. Being a beginner, it can be difficult for you to navigate such a fast setting

So you need to learn the ropes first before investing your hard earned money in the stock market. Thankfully, there is a way to do this and many financial experts call it ‘paper trading’. If you are wondering ‘What is Paper Trading?’ Keep reading to learn about this exciting concept.

What is paper trading?

Paper trading is the practice of practicing the art of trading in the stock market in a completely virtual environment without investing your money. This virtual environment is separate and the moves or trades you make here have no effect on the real stock market.

Paper trading simulates real-world values ​​and price movements of stocks and allows you to trade using virtual money. It allows you to test your trading strategies in a real world context to assess the success or failure of the stated strategies, without risking your money.

Here is a fun fact for you. The term ‘paper trading’ or ‘paper trade’ came into being when it was physically traded on exchanges rather than through an electronic platform. Traders and investors write down their trading strategies and ideas and practice them on paper and compare them manually with the price movements of the stocks in each trading session.

Some advantages:

Now that you are well aware of the paper trade, let’s take a quick look at some of the benefits it offers to  traders and investors like you.

Since there is only virtual money in the paper trade, you do not have to risk the hard earned money to conduct practice trades. It completely eliminates all kinds of risks and allows you to make bold business decisions with more confidence. Without the risk of losing your money on bad trades, you are really in a good position to practice and learn the art of trading in the stock market.

When it comes to trading, your stress levels can play a huge role. When you are new to this activity, emotions such as greed, fear and stress can take over, leading you to trades that do not meet your expectations. With the proper practice of using paper trades, you can learn to control your emotions and your stress levels. This allows you to view trading in a more objective manner.

Some disadvantages:

Now let’s look at the other side of the coin. While the paper business is a very good way to learn, it still suffers from some disadvantages. Here are a couple of them

It can lead you to take more than you can handle

Again, since you are only using virtual money to handle paper transactions, you may have no attachment to Lets. While the paper business is a very good way to learn, it still suffers from some disadvantages. Here is a couple activity of them. This will make you dare to take more risk than you would normally take if real money is involved. Also, you may not take seriously the risks you experience during the paper business, which can have consequences in the real world.

One of the paper trading platform


Neostox.com is a flagship product of Neostox FinTech. Conceptualized, crafted and developed by veteran traders having 15+ years of experience in international stock/options trading. Several research analysts have participated in the development of features to help you, to trade faster and earn profits.

Neostox is India’s first 100% real time trading platform with virtual money to experience live trading in NSE. The core idea of Neostox is to help millions of traders who have good strategies, want to focus on the analysis and require a platform where they can trade in real time with virtual money for testing, before going live.

When you register, a virtual cash of INR 10 Lacs is credited instantly in your account. And then you can topup your account with virtual cash of Rs. 1 Crore. As an interactive and online trading platform, you can buy and sell all the equities, futures and options available in NSE. For options you can choose monthly or weekly options.

When you buy and sell, the orders are executed virtually inline with the running prices in the market and you will be able to view them just like you would see in, real trading platforms.

Virtual money is always available. You can easily top up your account upto Rs. 1 Crore anytime you want.


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