Trading
Institutional Trading
Trading by large financial institutions that move markets.
Full Definition
Institutional trading refers to buying and selling by large entities like banks, hedge funds, and pension funds. These players move significant capital and can influence price direction. Smart money concepts attempt to identify where institutions are likely to enter or exit, allowing retail traders to trade alongside them.
Example
Before major economic releases, institutional traders often position themselves, creating specific price patterns that smart money traders learn to recognize.
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