Paper trading is one of the best ways to learn trading without risking real money. It allows traders to test strategies in real market conditions and understand how trades behave before using actual capital.
With platforms like Upstox, it is possible to forward test strategies across multiple segments including Nifty, Bank Nifty, and stock futures and options.
How to do Paper Trading in Upstox? – Step-by-Step Tutorial
Can You Do Paper Trading on Upstox on your Computer?
- Open a demat account with Upstox if you haven’t already created one.
- Once the account is active, go to a web browser and search for Sensibull.
- Open the Sensibull website and proceed to login using Upstox credentials.
- After logging in, go to the Trade section in the upper menu.
- Locate the Practice Trade/Draft Portfolios option and open it.
- Once opened, it will say that you can’t do paper trading because you have a free plan.
In conclusion, no.
Unlike Zerodha, Upstox offers only a free plan that won’t let you do paper trading on a PC.
How to Do Paper Trading on Upstox on your Mobile?
However, Upstox allows you to do paper trading on the Sensibull mobile app – even with a free plan – as long as you log in using your Upstox account.
- Go to the Play Store or App Store and download the Upstox application.
- Open the app and create a demat account if it is not already created.
- After the account becomes active, go back to the Play Store or App Store.
- Search for Sensibull and download the application.
- Open the Sensibull app and login using Upstox credentials.
- After logging in, you will be in the ‘Home’ section.
- Click on Practice Trade/Draft Portfolios option and start practicing.
Paper trading does not require any real money. The platform provides virtual capital for practice, and all trades are simulated but based on real market data. This helps in understanding market behavior without financial risk.
After setting up, trading can be practiced in segments like Nifty, Bank Nifty, stock options, and futures. Traders can execute trades, such as buying calls and puts or selling options.
It is also possible to test different strategies like straddles and iron condors, observe how option premiums move, and improve risk management and position sizing skills.
Important Considerations
Paper trading does not involve real emotions like fear or greed, so real trading can feel very different. The focus should be on consistency and learning rather than just profits.
It is also important to practice risk management right from the start.
Does Upstox allow paper trading?
No, Upstox does not support paper trading directly. However, you can do paper trading indirectly via Sensibull on your mobile if you have an active Demat account with Upstox.
How do I switch to paper trading with Upstox?
To practice paper trading with Upstox in the Indian financial markets, you must have a Demat account with them. Once your account is active, log in to Sensibull using your Upstox credentials on your mobile; from there, you can practice under the ‘Virtual Trading’ option.