Insitutional Trading

Institutional trading refers to the buying and selling of financial instruments by large organizations such as banks, hedge funds, pension funds, mutual funds, and insurance companies. These institutions trade in much larger volumes than individual (retail) traders. Often, they have access to different pricing and advanced trading tools due to their size and influence in the market.

Because of their resources and expertise, institutional traders often use complex strategies. They have teams of analysts, economists, and traders working together. Their trades can significantly impact the market, especially in less liquid assets. Understanding how institutional trading works is important for retail traders. These large players often drive key price movements and create areas of supply and demand that can be used for strategic decision-making.

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