Define Virtual Market Stock Exchange

A virtual stock exchange is a simulated environment.

A virtual stock exchange is a simulated environment in which participants can trade in stocks and build and maintain personal portfolios. A virtual stock exchange may help potential investors to learn about and understand how the stock market works without undertaking any financial risk.

Benefits

Virtual stock exchanges include stocks traded in the NYSE and Nasdaq. In a virtual stock exchange, real price fluctuations in the NYSE (New York Stock Exchange) and Nasdaq are simulated, so that users have real-world exposure to price movements of commonly traded stocks.

Getting Started

There are a number of online virtual stock exchange platforms. Users interested in participating in the simulated market may register online by filling out a brief form, and then start trading by joining a game.

Game Configuration

Once registered, a user may find an existing simulation or create a new one based on parameters such as beginning cash balance and simulation end date. Additionally, users may also set advanced trading options such as margin accounts and volume limits.

Competition

Participants in a virtual stock exchange may compete with one another over public games, or join a private game by invitation. Players can also choose to view opponents' portfolios to compare individual gain or loss with opponents.

Order Execution

Trade orders in a virtual stock exchange are executed on the same day. Open orders placed before 9.30 a.m. (EST) execute by 9.50 a.m. Stop and limit orders are checked once every few minutes to determine whether the price has crossed the stop or limit threshold.

References

• Virtual Stock Exchange: FAQ
• How The Market Works: Home