How to Sell Paper Stocks Online

Selling paper stocks is relatively easy and requires no risk.

Paper trading helps prospective traders determine whether a particular trading strategy may be profitable without risking money. Paper trading is the virtual exchange of stocks; no actual stocks are acquired and no money is lost nor gained. Selling paper stocks online involves being registered with a virtual stock exchange and exchanging the current market value of the security for the virtual stock. For example, if an investor owns 500 paper (or virtual) shares of a company and sells the company at $10, the investor receives 5,000 paper dollars for the 500 paper shares.

Instructions

1. Log on to your virtual trading account. Many free online virtual stock exchanges exist, such as Wallstreetsurvivor.com and Virtualstockexchange.com. If you do not have a virtual trading account, create one. If you forget your username or password, contact customer support.

2. Choose one of two instruction options. Two methods of selling virtual shares exist, "all or none" or a "no instructions." An "all or none" (AON) order either sells or buys all of the shares or none of the shares. In the "no instructions" option, shares are sold or bought through the quickest route possible.

3. Determine whether you want to place a market order or a limit order. A market order sells or buys the virtual security at the current price of the stock. For example, if the last traded price of a stock was $15, then $15 is the current price of the stock. In a limit order, a stock is sold at or above a specified price or purchased at or below a specified a price.

4. Buy a stock on a virtual stock exchange. Select "trade," which is usually located in the toolbar at the top or left side. Enter the number of shares you want to buy, the order type and the instructions into the symbol for the selected security. Press the button labeled "buy" to buy the security.

5. Trade a virtual stock. Select "trade," and enter the number of shares you want to sell, the order type and the instructions into the symbol for the chosen security. Press the "sell" button to sell the security.

References

• Investopedia: Paper Trade

Resources

• Virtual Stock Exchange: Homepage
• Wall Street Survivor: Homepage