Virtual Trading or Stock Market Simulator – Types, Benefits, Technology & more

Virtual Trading is a very well known concept in the Stock Market world. Stock Market Simulator or Virtual Trading Platform helps a stock market beginner to trade in the virtual environment with virtual money.

This helps a beginner to learn the trading concepts & techniques. He / She can easily understand where they are going wrong & how they can come over these mistakes without spending any money.

In this article, you will learn in detail about Vitual Trading Platforms, its benefits, how it works & other major aspects aswell.

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What is Virtual Trading Platform or Stock Market Simulator?

Replicating card games and similar gambling series to create a similar virtual environment is highly witnessed by all of us.

The same concept is adopted under Virtual Trading, where an application, known as the stock market simulator, creates a mirror environment of stock market and actual trading, in an attempt to help the newbie’s.

So, in short, virtual trading platform is a computer based application, which lets the users carry out the trading activities, just so to get accustomed with the entire concept.

No real money is invested in the process and so is there no risk of losing money associated. The idea is to let the investors practice and also educate them of stock market.

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    What is a Virtual Trading Account?

    Before you actually start trading, applying all of your investment strategies, you can perform a routine check on your profit earning capacity. That is how likely your investing strategies will fetch you successful returns.

    Virtual trading account is a replica of real account. It helps you figure out how to operate a stock broking platform and create a portfolio.

    How to start playing on Virtual Trading Platform?

    The process to vet started is as seamless as it can get. You need to find the Share Market Simulator platform, which you think would best suit your need.

    Open paper trading account in the selected website and fill it up with some virtual money, and start buying and selling shares of the companies you are interested in, likewise real market.

    The trades will fetch you profits and losses, which can be summed up at the end to determine the overall earning or loss.

    Types of Virtual Trading Platform or Share Market Simulator

    The stock market simulators are classified under two categories, based on how the account work, and what they let you deal with.

    Financial simulators

    Here, the users have access to the real stock market entries. This lets them create a portfolio on the basis of real feed. The feed however runs behind by around 15 to 20 minutes, for determined precautions.

    The aim is simple, let the users practice trading and test their competency.

    Fantasy simulators

    The fantasy simulators are actually the shares and derivatives which are available to trade, just to convert the virtual platform into a fun based platform.

    Such listed commodities are not found in real exchange or commodity list. They merely comprise of stuffs like movies, TV shows, sports etc

    Tools and Technology used in Virtual Trading Platform

    Online stock market stimulators are built up and run on either Java, JavaScript, ASP or PHP with a MySQL or PostgreSQL database.

    A lot of the online stimulators are released as on open source, with a permission tag to use the software, while the others are actually built to be sold as software.

    The software built with a motive to be sold are coded to be the prediction softwares, exclusive to the purchasers. Such simulators are customizable and can be used to implement a lot of plans and strategies. Technology assistance is a great part of such simulator platforms.

    Moving on with the tools you will find in the simulators, you need to be well aware of the one which are provided in trading platforms and the process of using them.

    The tools which would add onto your trading journey and let you make use of the online trading platforms are replicated as well. Let us check out some of them, basically the ones which would benefit you the most.


    Stock screeners make up an important part of your research activity, which presents the overall scan of the market. So, you will be able to draw an overall case scenario of the average volume, price, patterns and lots more.

    You can enter your preference and the screeners will scan up the market, and present to you the ones which match with your preference. A simple search, with a predetermined price and volume will give you aggregates of all the likewise shares.


    Indicators are generally an amalgamation of historical data, where the future price movements of the stocks are predicated. Analysts gather the needful resources such as price, volume, open interest of traders etc, and draw movement of future price.

    Chart system

    Charting is the complete analysis on stocks and its performance. A time frame is taken into account and all the movements of stock on the particular frame are entered in chart based software in the form of lines or candlesticks. Virtual charting tool lets the traders know how real charting would work.

    The right knowledge of all the tools which comprise of the stock market trading terminals will let you ace investments and trading. The learning begins from the virtual trading platforms.

    How does the stock market game work?

    Virtual realities have become a trend; goes with the fashion, stock market games, where simulated market environment is created, and the players are given access to dummy stocks, futures or even currency.

    The idea portrayed is to create a learning platform for the trading enthusiasts, who wish to take up the journey of trading, but are scared of losing, or simply cannot afford losses.  Others may use it as a mere entertainment basis, where no real risk is suffered by the players.

    A major lot of the simulators are based on real indices and data from the exchanges Nasdaq, NYSE, AMEX and other major stock markets. While the other are fantasy commodities, which are in no way related to stock market instruments and objects. One such mere attraction is sports team.

    Benefits of virtual trading platform

    You might have already figured out how beneficial stock market simulators can be. But to give you an overall case scenario, we have rounded up all the benefits. Here are the ones you will enjoy by using the virtual trading platforms.

    • Account opening process, which includes documentation, is exempted here.
    • You will not be required to invest any real money on the contrary to real trading through demat and trading account.
    • You will be well adhered with the basics of stock market platforms and the entire business, and also determine which of the strategies would work and the ones which needs alterations or omission.
    • The risk of losing money and other risk constituents are extinct here.
    • The risk you will not be willing to take up in real, can be undertaken here to implement and test how successful it can be or how utterly disappointing it can get.

    Drawbacks of virtual trading platform

    Pinpoint the nature of drawbacks. We consider the perceptions differ and they would not necessary result to be drawbacks, if you do not consider it that way. Also, no other thing which exists is barred from drawbacks, so here is the share of drawbacks of virtual trading platform.

    • You might take the investment for granted, as you will not have the real attachment which money brings. You may overlook a lot of aspects which matter in real life.
    • The loss or win you make here is not real. As a result, the entire environment can get you bored after a sufficient time.
    • The scenario would not exactly be alike in many aspects. Where one such risk is the lacks of ability to take some major risks in real trading. The fear of losing more is real, and so, the replica won’t actually be the same environment as a simulator.

    FAQs related to virtual trading platform

    What is a virtual portfolio?

    Financial concerns are real, and diversification is highly recommended. Building a portfolio is your go to financial solution. And, experts know the right way of creating a great portfolio, where your returns are at the highest potential.

    Virtual portfolios are actually a great way to learn, being risk free. You can actually monitor the virtual or practice portfolio you created to calculate which of the strategies would work for your return plans.

    What is a mock stock?

    It is a game where the model comprises of stock exchanges of the world. You will be taken along the price movements of the share transactions, so it can be considered as a tool used to teach the trading enthusiasts. No real money goes into the play, and the stock market movements can be learning by means of electronic or paper.

    You will learn a lot of aspects regarding the stock market, by how you use the mock stock market to gain necessary insights, completely depends upon you. The reason is altered psychological effect when you put in real money.

    What is a virtual trade?

    Virtual trading is a methods used to make the aspiring traders well accustomed with the process of stock market investment and trading, without actually getting involved in real trades, and losing money for means of learning.

    The learning process is made risk free by the virtual trading. One may also use it to implement some new built strategies of investment, without losing money for real. Online trading has made everything easier, and it has also made it easier for companies to build and provide such virtual trades.

    What is virtual financial market?

    Virtual financial market is a method of providing virtual investment and the possibility of undertaking asset transactions. The real money dealing is eliminated here, while the virtual markets function the exact way a real stock market functions.

    Virtual markets even have the databases of real stock exchanges, but are delayed by around 15 to 20 minutes. Such precautions are taken so no real competitive trade can be undertaken with the data of the virtual financial market. The environment is just as real, though the money is not.

    What is dummy trading?

    As the virtual trading platforms or the simulators do not trade with real money, virtual money is used to place trade order to see how the transaction would result into. Dummy trades, i.e. replica of real trades are placed in order to know the entire scenario of order placement.

    Dummy trades are designed to resemble real trade in stock market, the device the exact mechanism of trading. This make the users well aware of the process of order placement.

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