Learn How to earn consistent income by following FII data
FII stands for Foreign Institutional Investor. FII includes pension funds, insurance companies, mutual funds, and other institutional investors from abroad.
Institutional investors like FII’s are the trading firms (for example, CitiGroup, J.P. Morgan) which exert a huge influence on the price dynamics of financial instruments because of:
- Their ability to trade diversified financial instruments (which may or may not be available to private investors)
- The ability to manage a significant amount of funds for the clients
First of all, let us take a look at the difference between Institutional and retail traders:
Institutional Traders:
- Big Institutional traders manage the accounts of other people.
- Institutional traders have a large corpus of money flow for trading.
- Institutional traders always Hedge their positions with different asset class
- Institutional traders have access to IPOs, Futures, Swaps, or more such trading assets.
- Institutional traders have the ability to negotiate trading brokerages or taxes!
Retail Traders:
- Retail traders trade with their own money and with their own research!
- Have limited capital and need to bear the loss in case of adversity
- Most of the retail traders trade with few instruments due to a lack of capital
- Usually, retail traders do not have access to trade swaps or any such trading instruments
- Trading brokerage & tax are fixed for retail traders
Do you want to learn "How to trade like Institutionals traders?"
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