(Last Updated On: June 27, 2020)

Before jumping into today’s article, let’s begin with understanding what is virtual trading and stock simulator, in the world of investing. Trading is not easy, even though it might look like!

What is Virtual Trading? Meaning

Virtual trading or paper trading is a system of simulated trading where beginners can exercise investing without actual money at stake. It gives them the opportunity to test strategies, inculcate discipline and learn risk management against real movements in the stock market. It can be considered a safe space to recognize the mechanisms of trading and develop a portfolio.

Specially, a beginner can learn how to place shorts, go long, discover instruments such as futures or options, and explore the trading mindset which is known to take a psychological toll even on the best.

Also, it is not just limited to beginners, as many advanced traders go back to virtual trading to sharpen their tactics or stay away from real money trading after a losing streak.

What is Stock Simulator? Meaning

Let us dive into another concept called “stock simulator” before moving to our main topic:

  • It’s a program or application which tries to imitate characteristics of a live stock market
  • It allows users to trade asset classes such as stocks, futures, options, commodities, or currency
  • This lets traders utilize fictional money to buy or sell shares
  • Consumers can take up several investment positions and analyze their performance
  • Helps to test different strategies and risk management
  • A stock simulator is equipped with trading tools which you find on active brokerage trading accounts

Now, let’s get deeper into our topic of discussion “Moneybhai Review” and gather more details on it.

What is Moneybhai? Virtual Trading Game

It is a virtual “stock market simulator” developed and maintained by India’s leading financial information source Moneycontrol. It lets traders create a portfolio account with imaginary money, get an intraday limit and invest in all instruments such as stocks, bonds, mutual funds, and fixed deposits.

The platform uses real market data, with actual time positions exposure like a real trading account but without genuine money. Users also can reset their portfolio balance which is not possible with a brokerage account. Besides this, the platform also provides resource material to educate consumers on jargons such as GTC orders, STT, square off, short covering, open positions, transaction history, limit orders, stop loss, brokerage, GTD orders, target price etc.

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Moneybhai: How to play on this Virtual Trading Platform?

  • Firstly, you have to register on moneybhai.moneycontrol.com to initiate an account.
  • You begin with Rs. 1 crore cash in your portfolio account and Rs. 1 crore intraday trading limit.
  • The next page lets you pick up a stock, or mutual fund, or bond or create a new fixed deposit. It also provides access to expert recommendation in case you are unsure what to buy.
  • On the next page, the user can choose between cash or intraday and feed in details such as quantity to trade, current or limit price, order validity, target price, stop loss and trade reason. They also get an option to share their trade on forums within the moneybhai arena to analyze the trade and examine concepts.
  • Users can add a nickname to their account as well.
  • Once you place the request, you can go to the order book to check it. The page provides easy access to their portfolio, transaction history, profit & loss statement and order book.
  • Other helpful features include risk analyzer tool, gainers, or losers in the market on a given day, portfolio analysis and competing with other trader on a section called “my leagues”.
  • The risk analyzer helps with a glimpse of their risk-taking capacity and tolerance level by evaluating up a 20-question questionnaire.

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Moneybhai Game/App Rules to follow:

  • The consumer is required to square off or close their intra-day position before the end of the day or it gets automatically squared off by the server. The intra-day limit is reset every day.
  • The brokerage charges differ according to the type of trade executed. These will be like real trading account, where you receive contract notes on the next day detailing the various charges.
  • The platform lets you reset your portfolio anytime you are on the platform.
  • Transactions executed cannot surpass real volumes in the market.

Virtual Trading Platforms: The Bottom line

Many consumers of “Moneybhai” have found it advantageous and have added benefits to their education curve. It has provided many a vital opportunity to learn the basics of trading, share their thoughts with others on forums while learning from others. Further, it helped try out trading advice or recommendations from experts, explore their risk capacity and build their stock trading plans.

However, it is important to note that virtual trading platforms can only contribute to a certain extent to the trading mindset to consistently perform in the market. After all, the real stock market is highly volatile. You can fully grasp the intricacies in the real world trading only. Of course, the virtual trading platforms or investing simulation games act as a fair practice for aspiring stock traders. What do you think about such stock simulators? Feel free to discuss.