The Shifting Market: Institutional Flows vs HFT Flows

By Irene Aldridge (

Post date: 2023-05-09 20:31:31 GMT

AbleMarkets AI Research Reveals the Different Roles of Institutional Investors and High Frequency Traders

According to AbleMarkets AI, Institutional investors switched focus to buying the U.S. markets in the afternoon, while HFT flows started extremely negative in the pre-market session, but then switched to mixed flows.

Institutional flows refer to large orders placed by institutional investors such as mutual funds, pension funds, and hedge funds. These investors typically trade in large volumes and hold the assets for a long period of time.

HFT (High Frequency Trading) involves the use of algorithms to rapidly trade financial instruments. HFTs often take advantage of small price changes and use high speed computers to execute orders quickly. HFTs typically focus on short-term profits and may hold positions for a few seconds, minutes or hours, but rarely overnight.

AbleMarkets AI research show that both institutional flows and HFT flows are predictive of the impending market movements, but in different ways. HFT flows predict short-term market oscillations. Institutional flows predict longer-term flows. Ahead of major announcements, like tomorrow's CPI figures, institutional flows may be the opposite to the expected signal to create more advantageous pricing the following day. Subscribe to AbleMarkets AI today to take be aware of institutional and HFT flows as they occur.

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