Paper trading can teach you valuable lessons about real trading, allowing you to trade with virtual money in the same way you would have done it with real ones.
However, it’s important to know that there are (or may be, depending on the paper trading platform you’re using) some differences between paper trading and real trading:
- Data can be delayed;
- Some hidden costs like slippage and commissions may differ when compared with live trading or not taken into consideration at all;
- Some platforms assume that your orders fill at the given price. So when you switch to real trading, you will experience more friction;
At Vestinda, we’re trying to simulate real market conditions as much as possible. Data used is from the live exchange and is up-to-date, as much as the exchanges offer it. Commissions are taken into consideration when calculating paper trading returns and orders fills are modeled based on the real order book.