Stocks

• Stock paper trading demonstrations are a little bit difficult to find due to the fact that most investors are familiar with the stock market. Equity markets are usually the entry point for investors, so they have a strong sense of the dynamics and it is also more intuitive than other markets. However, you can access paper trading the stock market through Interactive Brokers. They provide two-to-one intra-day margin (you can borrow twice the value of the trade) which provides a bit more risk and requires some training to become familiar.
  
  

Futures

• Futures includes commodities such as foodstuffs, metals, grains and currencies. Most investors have a little bit more difficult time comprehending these products, so they require paper trading practice. Lind-Waldock and Options Express both provide paper trading options. They each offer their own customized trading platforms. They have different charts, tools and custom indicators to help the trader make price predictions. In addition, the trader must get used to the 50-to-1 daily loans on each trade.
  
  

Forex

• The Foreign Exchange market (Forex) is the price of currency pairs traded around the world. Because they do not trade on centralized exchanges, they have a great deal of risk. In addition, they provide high leverage of 50-to-1 (50 times the value of the trade) which is extremely risky. Firms such as Forex.com and FXDD allow traders to practice with thousands of dollars on their platforms.
  
  

Paper Trading Strategies

• Paper traders should try to simulate the real trading environment as much as possible by using the same strategies as their actual investments. However, paper trades have the advantage that they can instantly be filled at the price. It will be easier to enter and exit trades, which makes it easier to make a profit. Paper traders should also avoid undue risks because it will make it more difficult to understand the live trading environment.