Smart money concepts

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Smart money is the money invested by central banks, big banks, institutions, market experts, hedge funds, investment management firms, and other professionals. Smart money is the word derived from gambling terms, where it is often referred to as the money profited by gamblers with a good record of success. It was often referred to gamblers who used to have an in-depth idea and insider information of the game. (Caroline Banton, 2020). The concept is similar in the investing world. The smart money in forex is often referred to as the capital invested with deep knowledge of the market, which the retail traders cannot approach. Thus, it is considered to have a lot more chance of success than the technical analysis of retail traders (Caroline Banton, 2020).