Paper trading and Solana trading terms, explained

Practicing trades with simulated money instead of real funds. Results are recorded in a simulator, and no real asset is bought or sold.

An order to buy or sell immediately at the best available current price. The final price can differ from the price you saw because of slippage.

An order that only executes at your chosen price or better. It may never fill if the market does not reach that price.

The difference between the price you expected and the price you actually get. It is larger in thin markets and for larger orders.

The maximum price movement you accept before an order is rejected instead of filled.

How easily a token can be bought or sold without moving its price. Low liquidity makes exits harder and slippage larger.

How much your own order moves the market price. It grows with order size relative to available liquidity.

The gain or loss on a position. Unrealized PnL is on an open position; realized PnL is locked in once the position is closed.

How much capital you commit to a single trade, usually the main driver of how much a trade can win or lose.

Preset exit levels. A take profit closes a position at a target gain; a stop loss closes it at a maximum accepted loss.

A token driven mainly by community attention and speculation rather than fundamentals. Memecoins are highly volatile and can lose nearly all of their value quickly.

A scam in which a token's creators or large holders drain liquidity or sell their holdings, collapsing the price.

An optional extra fee on a Solana transaction that can help it be processed sooner when the network is busy.

A trading venue run by smart contracts rather than a company. Many Solana tokens trade on DEXs.

See how to paper trade Solana for a practice routine, or the simulation methodology for how PaperTrader models these costs.

Start with simulated SOL, make a trade, and review what happened. No wallet deposit is required for the paper-trading experience.