Simulated trading, also known as paper trading, is a practice that allows individuals to trade financial instruments without using real money. This method enables traders to test their strategies, understand market dynamics, and gain experience in a risk-free environment. It often uses real market data to mimic actual trading conditions. Many trading platforms offer simulated trading features, allowing users to create virtual portfolios and execute trades as if they were in the real market. This practice is beneficial for both beginners, who can learn the basics of trading, and experienced traders, who can refine their strategies without financial risk.