Paper trading, introduction

🔒 Paper = the safe default. By default orders are paper (virtual money): nothing goes out to a real broker until you switch execution on yourself. Real execution on Rithmic is available, but only behind an explicit gate, you connect your broker and enable it deliberately. This guide covers paper mode.

Behind the scenes there is a real matching engine: your paper orders are filled against the real live book and trades (so with realistic slippage and prices), but without risking money.

The accounts

There are two local paper accounts: SIM-1 (“Paper 1”) and SIM-2 (“Paper 2”). Each has its own risk limits:

• max 10 contracts per order,
• max 20 net position per symbol,
• a −$5,000 daily loss stop (beyond which it blocks new orders that increase risk).

Positions and PnL are separate per account.

For a step-by-step walkthrough see Placing an order.