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Institutional Trading

Institutional trading and data feed

Trading Istituzionale

In institutional trading, volume analysis plays a key role.

By volumetric analysis we mean a trading methodology, devised in institutional trading, based on volumes, i.e. the contracts represented between those who buy and those who sell, volume analysis is now an essential tool, in addition to training it is very important however to use a valid data feed.


In volume analysis hides one of the most important problems for those who use it, namely data, of course this is not a problem in institutional trading as institutional traders have access to higher quality data (due to the fact that they can afford a higher cost). A data feed is a provider that allows you to obtain the data of a stock exchange, in Forex this is not a problem because the broker provides its data, but in Futures this is not the case, the data feed is fee based, being centralised it guarantees the passage of all orders on that exchange, thus allowing for a correct volumetric analysis, this is the case in institutional trading as well as non-institutional trading. In forex, on the other hand, since it is not centralised but OTC, market data are fragmented and consequently volumetric analysis is not reliable; however, there is the possibility of using the Future for volumetric analysis and then operating directly on the unregulated underlying ( Forex ).


Basically, in institutional trading you have more advantages. not only on the data, but already that is a good point. There are, however, several very valid data feeds that are accessible to everyone and at a price that is not too excessive. They may not be used in institutional trading, but certainly by many professional traders, trading floors and small funds.


Now that you have a clearer idea of volumes and institutional trading I leave you the links to Volusia Trading's Order Floor course used by trading floors and some institutional traders and the completely free course on footprint, volume profile and heatmap.



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