Looking for how to paper trade options on Tradingview? You’ve come to the right place. This guide will teach you how to paper trade any of the following option market: forex, commodities, synthetic indices, and others on tradingview.
One of the best pieces of financial advice I can give is that if you are new to option trading and are not familiar with how the market moves, you should first start with a paper trading account to get yourself acquainted with the market.
Apart from beginners, savvy traders also use simulated trading(paper trading account) to test their trading strategy to see if it works. This way, they can take as many trades as they like and see how much profit they will make per trade, their winrate, average loss, and other important information with their new strategy.
So, let’s get started.
Table of Contents
What is paper trading?
Paper trading is a simulated trading process where traders buy and sell assets without having to risk real money. It is always recommended for beginners to use this simulated trading to get their feet strong and also for experienced traders to test their trading strategy.
With this trading simulator, advanced traders can know when to enter or exit a trade with their new trading strategy, and also what asset to trade at a certain time. This will help them gain confidence in the strategy and trade without fear when they go live.
Steps to paper trade options on Tradingview.
Before I take you through these steps, I must remind you that you can’t trade options on the normal tradingView for currency pairs. Instead, you need to use the tradingview extension for binary options. If you don’t know about tradingview for binary options, then I recommend you read this guide first.
Paper trading options on TradingView is very simple: first create a demo account, then analyze your options on TradingView for binary extensions, and finally place your trades.
Here is a step-by-step guide on how to paper trade options on tradingview.
Step 1: Go to the TradingView Extension for Binary
Tap this link to visit the tradingview for binary option platforms. You will be taken to a page looking like this.
On this page, you can add synthetic indices, forex options, commodity options, and other options to the chart and analyze them. Also, you will find the drawing tools on the left corner and the option indicators on the top right corner.
Recommended: Understanding the Tradingview for Binary UI.
Step1: Create an option paper trading account.
When you’re in the tradingview for binary UI, you’ll notice an option to create a demo account in the upper right corner.
Click on it and you will be taken to a new page to create a demo account.
You can then enter your email to set up an account or sign in with your Google account.
After setting up your demo account, you see a page like this.
Step 3: Do your Technical analysis.
Because the TradingView for binary option charting pages and demo account pages is not integrated, you will have to switch between the two pages as you trade.
You first start by selecting and analyzing any option you want to trade on the charting page. When you have your trading decision, you then click on the “create demo account” tap to be taken to where you will place your virtual order.
Step 4: Place your orders.
The order page will look like the picture below. I am going to explain them with the circles.
Circle 1:
This is where you select the “option” you want to trade. In the image above, I have selected the synthetic index of 75 option, you can click the drop down to see more options.
Circle 2:
This is where you select the type of option contract. In the image above, I have selected up/down contract, you can click the drop down to see more options.
Circle 3:
This is where you can configure your order, like duration, start time, amount you want to use, and others. I have selected a minute duration, start time-now and stake in the image above. You can configure your own based on the results of your technical analysis.
Circle 4:
This is where you execute your orders. You can either purchase the option to go higher or lower depending on your technical analysis.
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Can You paper trade options on Tradingview?
You can’t paper trade options on the normal tradingview platform for currency pairs. If you want to paper trade options on TradingView, you can use the TradingView extension for binary options.
Conclusion:
With this guide, you have learnt how to paper trade options on Tradingview. You can go ahead and test your trading strategy or learn option trading( if you are a beginner) without having to risk your real money.
If you have any questions, you can leave them in the comment section below. I will do my best to reply to them.