Paper Trade Simulated trading that investors use to practice mimicking trades (buys and sells) without actually entering into any monetary transactions. Investopedia Says: Paper trading is a good way to learn the ropes without risking any money. You can do it simply by pretending to buy and sell stock, bonds, commodities and mutual funds and keeping notes of paper profits or losses. Or you can open an account with an online market simulator. Related Terms: Backtesting Paper Profit Trade |