Paper vs live differences
Nocterm runs orders in one of two modes. In paper mode your fills are simulated in-app against the live order book - no real money changes hands. In live mode your orders go to the exchange for real. The two feel almost identical to trade, but what happens behind the fill is very different. This page lays out exactly how they differ.
The short version
Section titled “The short version”Paper is a realistic rehearsal. Live is the real thing. Paper simulates fills in the app against the same live order book live trading uses, and charges simulated maker/taker fees and funding at realistic default rates - so price action, fills, and cost drag all look authentic, with no money at risk. Live sends your order to the exchange, where it fills against real counterparties at real cost. Which one you get is set by the venue a panel points at: the Nocterm venue is always paper, and any exchange venue is live unless you turn on its Local paper toggle.
Side by side
Section titled “Side by side”| Paper | Live | |
|---|---|---|
| Money at risk | None - simulated balance | Real funds on the exchange |
| Fees | Simulated maker/taker + funding (configurable, realistic defaults) | Real exchange fees and any rebates |
| Fill realism | Simulated in-app against the live book | Actual exchange fills |
| Latency | Local, near-instant | Round-trip to the exchange |
| Needs a connected exchange | No - Nocterm is always paper | Yes - the venue must be connected with API keys |
| Runs while the app is closed | Caught up on next launch (1m granularity) | No - it’s the exchange’s account |
Fills and fees
Section titled “Fills and fees”Paper fills are modelled against the live order book - the same depth live orders see - so a paper fill at a wall or in a fast market behaves much like the real thing. Paper also charges simulated trading costs: maker/taker fees on every fill and funding on open notional, defaulting to Kraken-tier rates (maker 2 bps, taker 5 bps, funding 1 bp per 8h) and configurable per venue. The costs are simulated money, not an exchange invoice - but a strategy that only works at zero fees now fails on paper the way it would fail live.
Live fills are exchange fills. They cost real money, pay real fees (and earn any maker rebates), and are subject to the exchange’s own matching, minimums, and rejection rules.
Latency
Section titled “Latency”Paper resolves locally, so fills feel near-instant. Live has to make a round trip out to the exchange and back, so there is genuine latency between sending an order and seeing the fill. In fast markets that gap matters, which is one thing paper cannot fully reproduce.
While the app is closed
Section titled “While the app is closed”A paper account lives on your machine, so it only advances while Nocterm is open. If you leave a paper position open and close the app, the engine catches it up on the next launch - it replays the price history you missed (at one-minute granularity), so an overnight stop, target, or liquidation still resolves. A live position is the exchange’s, so it runs 24/7 regardless of whether your app is open.
Related
Section titled “Related”- Trading modes - choosing paper vs live per venue.