Paper Trading vs. Live Trading
MarketQuants supports both simulated trading environments and optional live brokerage integrations.
MarketQuants is an independent software platform and does not provide brokerage services.
What is Paper Trading?
Paper trading is a simulated trading environment that allows users to test strategies and explore platform features using virtual funds.
Key Characteristics
- Simulated order execution
- No real capital at risk
- Real-time market data (where available)
- Strategy testing and experimentation
Simulated results may differ from real-world trading conditions.
What is Live Trading?
Live trading occurs through a connected third-party brokerage account and involves real capital and financial risk.
When a brokerage account is connected:
- Trade instructions are transmitted to the brokerage provider at the user’s direction.
- Orders are executed by the brokerage provider.
- Gains and losses are real.
MarketQuants does not execute trades independently and does not hold customer funds.
Key Differences
| Feature | Paper Trading | Live Trading (Brokerage Account) |
|---|---|---|
| Capital | Virtual | Real Funds |
| Financial Risk | None | Real Risk |
| Execution | Simulated | Executed by Brokerage Provider |
| Purpose | Testing & Learning | Real Market Participation |
Important Considerations
Trading securities involves risk, including potential loss of capital.
Users are solely responsible for their trading decisions and should understand the risks before participating in live markets.