Market Simulation is a technique used to mimic real-world market conditions, allowing participants to practice trading and decision-making without financial risk. It often involves software that replicates market dynamics, enabling users to buy and sell assets based on simulated data. These simulations can be beneficial for both novice and experienced traders, as they provide a safe environment to test strategies and understand market behavior. By analyzing outcomes, participants can refine their skills and improve their performance in actual financial markets.