What is a Virtual Account?
A virtual account is a term used to describe an account created specifically for your paper trading journey. In order to purchase or sell any form of derivative, the account is also financed with fictitious or virtual sums. Similar to your typical accounts, it would routinely track your pay-ins and pay-outs, with the exception that you wouldn’t need an email or password to access it.
What is Paper Trading?
Paper trading is a simulated trading environment where a trader can use fake money to purchase or sell equities in the market in real-time. For all aspiring traders, it is the finest place to practise trading. Profits and losses will exist, but only with fictional funds. Therefore, paper trading is also referred to as virtual trading.
- Derivative: Financial contracts that have or draw their value from an underlying asset are referred to as derivatives.
- Strike Price: A strike price is a predefined price set by the trader for the options at a particular time. In other words, the strike price is the agreed-upon target price at which we agree to purchase or sell an option.
- Premium Price: The price of an option premium is the option contract’s current market value. Thus, the money that the seller (writer) of an option contract receives from the opposite side is premium price.
- Lot Size: Only specific quantities are ever purchased when purchasing options. This figure is determined by SEBI, and it changes periodically.
Navigation
Trade→ Paper trading→ Virtual account
Why use it?
A bank account is needed to process all your transactions during paper trading with virtual or fake funds. The virtual account helps fulfil this need. It is highly safe as it does not require email or any other sensitive personal data to set it up.
Paper trading, on the other hand, is a highly effective learning method. You may explore, practice, learn and master trading through paper trading.
Key benefits of paper trading are:
- Eliminates Risk of Capital
- Boosts Practice and Learning
- Enhances Skills
- Stress-Free Trading
How to use it?
You can check your available funds for paper trading on this account.
All the logs of your trades can be seen below.
You can also set a new base amount or reset your available funds for paper trading.
When you set a new base amount and reset, the funds added will add the new base amount and increase the count by 1.
DISCLAIMER – The videos and content on this platform are purely for educational purposes to showcase the Stolo product and help people understand how the product works. We will not be responsible for your profit and loss. Please consult with your investment advisor before making any financial decisions.