When you are preparing to make your first trade, you need to decide if you are going to trade in simulation (also known as paper trading), or trade live. Trading in simulation is identical to trading live, except that your orders are not actually filled, but are simulated by your trading software instead.
Advantages
Trading in simulation allows you to practice your trading, and because your trades are not actually sent to the exchange, they are not part of the market, and you do not have to commit any real money. Most trading software (order entry software) has a simulation option, so you can use the same trading interface as you will use when you are trading live. The steps that you will follow in the Making Your First Trade tutorial will be exactly the same, whether you are trading in simulation or trading live, and you should treat a simulated trade as if it were a real trade, so that you get the most benefit from the trading, which will be very useful when you start trading live.
Recommendation
I recommend that you make your first few trades in simulation, because it gives you time to learn your trading software, and make mistakes, without being concerned about the consequences. You should continue trading in simulation until you are comfortable using your trading tools (especially your charting software, and your trading software), are comfortable with your chosen market and trading system, and are satisfied with your trading results, and then you will be ready to start trading live.
