What is Smart Money

by InsiderFinance Team on 03/30/2022

Smart Money is the group of “key players” that control the market, accounting for over 70% of total trade volume.

They’re the hedge funds, proprietary trading firms, institutional banks, and billionaires that “set the tone” for the rest of the market.

When Smart Money makes large orders, high-frequency trading algorithms detect them and start buying or selling aggressively, depending on if Smart Money’s orders were bullish or bearish. 

The aggressive buying and selling from the high-frequency trading algorithms are what causes exponential volume increases, which leads to the big directional moves.

The algorithms are in and out in the blink of an eye due to their automated nature.

That’s why understanding Smart Money order flow is a leading indicator of stock price momentum.

The problem is these hedge funds and investment banks intentionally disguise their trades so only Wall Street insiders can recognize them.

InsiderFinance provides the institutional data you’ve always dreamed of accessing, analyzed by our tools in real-time and delivered to you in actionable format so you can put your money alongside the Smart Market and increase your probability of success.