Trading
Smart Money
Institutional traders and banks that move markets.
Full Definition
Smart money refers to capital invested by institutional traders, banks, hedge funds, and experienced market participants who are considered to have superior market knowledge and resources. Smart money concepts (SMC) attempt to identify and trade alongside these major players by analyzing their likely entry zones and manipulation patterns.
Example
Before a major move higher, smart money accumulates positions at lower prices, often creating liquidity grabs that trap retail traders on the wrong side.
Related Terms
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