Paper trading is a type of trading that investors utilize in order to practice trading in the real financial markets. This type of trading can be used with stocks, bonds, Forex, commodities, or any other type of financial security. With this particular method, you will act as if you are buying a particular security without actually exchanging any money. You will keep track of the movement of the particular security and how much profit you would have made if you had entered the trade. 

With this type of trading, you can test out trading strategies and methods. This is a good way to learn how to trade in the financial markets without actually risking any of your own money. 

As the name implies, you can keep track of your transactions on paper on your own. However, you can also get involved with paper trading online through several different providers. There are companies that act as an online market simulator that will allow you to place trades in real time just as if you were trading in the market. Some brokers also offer demo accounts that will allow you to do the same thing without trading real money.

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