The biggest advantages are the added liquidity due to facilitation and access to upstairs markets. Economies of scale to build tools or buy institutional tools. Most of the tools relate to derivatives trading. Access to world markets 24/7. You get shown more IPOs and Converts. Access to the knowledge on the upstairs desk. There is also a disadvantage of higher costs to trade.
A private trader has an enormous advantage over an institutional trader because of size. I can get my entire account into and out of the market in less than two seconds. Large institutions may take hours or even days to establish a meaningful position. In the days of pit trading it was possible to see what the large institutions were doing because everyone knew who their brokers were. That is no longer possible with electronic trading. However knowing whether a large institution is buying or selling is not necessarily useful. They are not always right and one doesn't know why they are buying or selling. They may be buying futures as a partial hedge to a short cash position, so they really expected the market to go down.im curious how much advantage the trading institutions actually have on retail
im assuming they have access to massive amounts of data and massive amounts of processing power to run predictive algos
and stuff like network analysis
is tracking network traffic to exchanges and company pages and other stuff is it legal( im assuming most traffic now is encrypted for that reason?)
what is illegal when it comes to institutional analytics?
like what can they have access to and what they cant?