Syntalium Wiki
Institutional Trading in Crypto: How Professionals Operate
TL;DR
Institutional trading is process-first. Governance and risk controls come before directional conviction.
Clear explanation
Professional desks operate with mandates, committee oversight, and execution playbooks.
Research, risk, and execution functions are separated to reduce bias and improve accountability.
Performance review includes attribution across signal quality, execution quality, and risk discipline.
Technical example: institutional trade lifecycle
A BTC momentum trade proceeds only after mandate checks, risk approval, and liquidity planning.
- Research submits thesis and triggers.
- Risk validates score/regime fit and limits.
- Execution selects venue and order tactics.
- Post-trade attribution is logged with SNAP evidence.
ASCII model
Research -> Risk committee -> Execution plan -> Trade -> Verification -> Attribution reviewRetail vs institutional model
| Dimension | Retail default | Institutional standard |
|---|---|---|
| Decision process | Narrative-driven | Policy-driven |
| Execution | Single venue | Liquidity-aware multi-venue |
| Review | PnL only | PnL + process + risk attribution |
Internal links
- Market Status model
Use objective regime labels to align desk behavior.
- Verification process
Maintain audit-quality records of published context.
- What is Market Score
Understand score as a permissioning layer.
- Risk management in crypto
Review core controls used by professional desks.
FAQ
Do institutional desks trade constantly?
No. Activity is reduced when context quality deteriorates.
What builds institutional credibility?
Transparent governance, consistent controls, and evidence-backed reporting.
Can smaller teams use institutional methods?
Yes. Written process, hard limits, and verification already raise execution quality.