Paper Trading Definition – What is Paper Trading? | CFI LB

paper trading

The term ‘paper trading’ originated from when traders on the stock market wanted to practice trading before trading with real money and would write their investments on paper and follow the market movements.


Paper trading is also sometimes called virtual trading or demo account trading and enables you to simulate a live trading environment with virtual funds before risking real money. a paper trading account helps you get used to your broker and the trading platform you are using, as well as test and refine your trading strategy. All traders should demo trade for at least 30 days before graduating to live trading.


CFI offers you the ability to trade the global financial markets with no risk using a free demo account. With a demo account, you get an identical trading environment to that of a real account so when you make the transition, the only difference will be using real funds.


Key takeaways:


  • Opening a paper trading account with a broker lets you get familiar with the trading platform and learn how it works from a user perspective.
  • Before you enter the markets for real, it is crucial that you can comfortably open, amend, and close trades when you need to.
  • Knowing how to efficiently use a platform removes a lot of unwanted stress when it comes time for live trading.
CFI Financial Group is an award winning global financial markets provider with over 23 years of experience and regulated entities in several jurisdictions, focused on offering impeccable execution and trading conditions including very low spreads, professional services, dedicated support and powerful tools.
CFI Financial Group has regulated subsidiaries in
London • Larnaca • Beirut • Amman • Dubai • Port Louis
Credit Financier Invest - CFI LEBANON
BDL no. 40
Ellipse Center 3rd floor, Charles
Malek Avenue, Achrafieh

CFI provides execution-only services and does not provide any investment advice. To make an investment decision, you cannot rely on the content of this website, or on any information, opinion, report or other materials (“Information”) you receive from CFI, or its representatives. Such Information is general and does not consider your objectives and your financial situation, thus they shall not be considered in any way as an express or implied promise nor a guarantee of any profit or limit of loss. CFI shall not bear any liability in case you used or relied on such Information. Please ensure that you make your own research and seek independent advice if necessary.

Forex and CFDs are leveraged products that incur a high level of risk. A small adverse market movement may expose the client to lose the entire invested capital. The majority of retail client accounts lose money when trading in CFDs. Please be aware of trading risks and that you could sustain a loss exceeding your deposited funds, even if a stop loss is used.

CFI Lebanon is regulated by the Banque du Liban and the Capital Markets Authority

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