@New users
What is Paper Trading?
Paper trading, also known as virtual trading or simulated trading, is a practice method where you can trade with virtual money (fake currency) in real-market conditions. It allows beginners to learn how to trade, and experienced traders to test new strategies, without risking real capital.
How Does Paper Trading Work on Binance?
On Binance, the paper trading feature is available through Binance Futures Testnet and sometimes via Binance Spot Testnet. Here’s how it works:
1. Accessing Paper Trading:
· Go to Binance Futures Testnet website (testnet.binancefuture.com) or access it through the Binance app under “Demo Trading” or “Practice” mode.
· You may need to log in with your Binance account or create a separate testnet account.
2. Virtual Funds:
· You receive a virtual balance (e.g., 10,000 USDT) to start trading.
· These funds are not real and cannot be withdrawn.
3. Real Market Conditions:
· You trade in real-time using actual market prices and order books.
· All features like limit orders, market orders, stop-loss, and leverage (for futures) are available.
4. Purpose:
· Learn trading interface and tools.
· Practice spot, margin, or futures trading.
· Test trading strategies risk-free.
5. Limitations:
· No real profit or loss.
· Slippage and liquidity conditions may differ slightly from live trading.
· Not all advanced features may be available.
6. Switching to Real Trading:
· Once comfortable, you can switch to the real Binance platform with real funds.
