Key TakeawaysOutsourced trading is a practice that financial institutions employ to outsource trading operations to a third party that specializes in it.Hedge funds, pension funds, asset managers, and mutual funds commonly employ outsourced trading companies services/Outsourced trading lowers costs, improves overall operational effectiveness, and lets professionals deal with the assignments they are best in.People are often unaware that many financial institutions including, hedge funds, asset managers, pension funds, and family offices outsource their trading activities to the third side. Thi…