机构订单原理英语版

机构订单原理英语版
In recent years, there has been a significant growth in the use of institutional orders in the financial markets.
Institutional orders refer to large trades made by institutional investors such as banks, mutual funds, and pension funds. These orders are typically executed with the help of institutional brokers who specialize in executing large trades on behalf of their clients.
The underlying principle behind institutional orders is to minimize market impact and achieve the best execution price. When institutional investors want to buy or sell a large
quantity of shares, it can have a significant impact on the market price. For example, if a mutual fund wants to sell a
large number of shares, it may flood the market with sell orders, causing the price to plummet. On the other hand, if a pension fund wants to buy a large number of shares, it may create a buying frenzy, driving the price up.
In conclusion, the principle behind institutional orders is
to minimize market impact and achieve the best execution price. Institutional investors use various order types such as limit orders and iceberg orders, as well as execution strategies like VWAP and TWAP, to achieve these goals. Institutional brokers
play a vital role in executing institutional orders by utilizing their market knowledge and advanced trading technology. By
carefully executing large trades, institutional investors can achieve their investment objectives while minimizing the impact on the market.。