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Institutional Selling Pressure

Definition

Institutional Selling Pressure describes the significant downward force on asset prices resulting from large-scale divestment by major financial entities. This occurs when institutional investors liquidate substantial portions of their holdings, often in response to market conditions, regulatory changes, or portfolio rebalancing. Such selling can lead to rapid price declines due to the sheer volume of assets entering the market. It indicates a reduction in institutional confidence or a strategic exit.