Stock Market Simulators: Types and Applications

Posted by Rebekkah On March - 22 - 2012 0 Comment

Phillippine stock market board

The process of investing in stocks and watching them increase or decrease can often be quite stressful, especially to those new to the stock market. It’s almost like people wish they could practice buying stocks. Interestingly enough, there is actually a simulator that has been created which reproduces settings similar to the current stock market. Since it is just a simulator, there is no financial risk involved. It’s basically just a means of practice.

There are two types of stock market simulators. Financial simulators have the ability to generate data based on actual stocks, operating on a delayed data feed by about 15 minutes or so. The practice aspect is that the currency used is virtual and therefore, not holding any actual worth. The benefit one would generally get from this simulator is that they would learn how to play the system, since it is based on actual stocks. Therefore, they would gain experience on determining whether or not they would gain money if they actually invested. The second type of simulator is a fantasy simulator. This type of simulator converts the stock items into real world things, such as movies or television shows, otherwise known as “entertainment stocks”. It can also be applied to sports teams. The other real thing in this situation is the money, if one actually bets on his or her team. Generally though, fantasy simulators are not based on finances at all. As mentioned, they usually involve sports teams where stocks go up for a winning team and down for a losing team. There are also fantasy stock games played where a player’s value is linked to how active they are on social media sites. In this case, stock players are motivated to invest virtual currency on players who have high social media rankings. Other fantasy stock market simulators involve various prediction games similar to these.

So, if you’re feeling pretty leery about investing and would like to learn a thing or two before trying to invest actual dollars in the real world, stock market simulators may be your answer!

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