What is Smart Money?

byInsiderFinance Teamon
Investor observing digital 'Smart Money' finance concept display.
 

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 whether Smart Money’s orders are bullish or bearish.

The aggressive buying and selling from the high-frequency trading algorithms cause exponential volume increases, which lead to 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. Our tools analyze smart money trades in real-time and deliver them to you in actionable format so you can put your money alongside the Smart Market and increase your probability of success.