Virtual Trading: Practice Risk-Free on a Real Trading Platform

Virtual Trading Platform Options traders are made, not born. Even the most seasoned veterans who trade broken-wing butterfly spreads in their sleep started slowly with basic strategies such as long puts and covered calls (and they probably traded stock before that).

Option trading can and should be a gradual learning process, but what's the best way to learn? Sure, there are websites and books that can teach the fundamentals, but others prefer to learn by doing, especially in this interactive age.

The virtual trading feature at OptionsHouse can help investors learn new strategies and experiment with new stocks and sectors without committing actual capital. The platform is hypothetical and educational and the account value is theoretical, but the price action is real.

Every OptionsHouse customer – whether a funded account holder or not – has access to the virtual trading platform. The virtual account is differentiated by its own color scheme (orange/gold as opposed to green) and a “V_” before the account number. Every virtual account is “funded” with $5,000 but feel free to add more virtual capital to better replicate your real-life portfolio (or if you prefer an alternate “reality” … live large and trade big!).

With regard to placing and monitoring orders, the virtual platform works the same as the regular trading tool, although prices are delayed by 20 minutes for unfunded accounts.

Of course, any winning trades you enjoy in your virtual trading account won't actually impact your bottom line, but neither will losing trades. Once you feel comfortable enough trading in the “virtual” world, you can trade with renewed confidence in the real one. So, try out that put tree butterfly in your favorite tech stock or get a strangle on big oil, and happy (stress-free) trading!

What new strategy or trade will you try in the virtual world? Let us know in the commenting section below.

Photo Credit: Enokson

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