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Institutional Investor

Glossary

An institutional investor is a large entity that manages and invests money on behalf of clients. Examples include:

  • Pension Funds → Retirement funds for workers.
  • Mutual Funds & ETFs → Investment funds pooling retail investor money.
  • Insurance Companies → Managing premium payments for future claims.

Institutional investors control massive amounts of capital, allowing them to move markets more significantly than individual retail investors. 

Retail vs. Institutional Investors:

FeatureRetail InvestorInstitutional Investor
CapitalLimited personal fundsLarge-scale capital (millions/billions)
Execution SpeedSlower, limited toolsFaster, with direct market access
Market InfluenceLess impact individuallyMoves markets with large trades
Investment StrategyOften emotional, speculativeData-driven, algorithmic

See also: Retail Investor