Nifty 50 Index
Education

Institutional Trading Process

16
1. Investment Idea Generation
This is where it all begins.

Institutions generate trading ideas based on:

Fundamental research (company earnings, macroeconomic data)

Quantitative models (statistical or algorithmic strategies)

Technical analysis (price action, trends, volume)

Sentiment analysis (news flow, social media, market psychology)

Often, the research team, quant team, or portfolio managers work together to develop high-conviction trade ideas backed by data and analysis.

2. Pre-Trade Analysis and Risk Assessment
Before placing a trade, institutions perform:

Risk/reward analysis

Scenario testing (How does the trade perform in different market conditions?)

Volatility analysis

Position sizing based on portfolio risk budget

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