In the financial market, large investors, also known as institutional players, are called whales because:

1. They move large volumes of money: Just as a whale is one of the largest animals in the ocean, these players move “oceans” of money in the markets.

2. They impact the market: Just as a whale creates giant waves when it swims, these players can influence the price of assets with their large purchases or sales.

3. They have more power: Whales are powerful in the ocean, and in the financial market, big players also have the power to manipulate or direct trends.

Examples of whales include:

• Investment funds.

• Large banks.

• Governments and sovereign wealth funds.

• Billionaire investors.

When a whale makes a move, the entire market pays attention because it can cause high volatility or trend changes.

How do institutions pay percentages to those who leave their money idle?

When you invest money in something like a bank, mutual fund, or bond, the money doesn’t actually sit “idle.” It’s used by the financial institutions to generate profit, and some of that profit is returned to you as a percentage return (interest, dividends, or yield). Here’s how it works:

1. Banks

• When you put money in a savings account or CDB, the bank takes that money and lends it to other people or companies in the form of credit (such as loans and financing).

• The bank charges high interest on these loans and returns a small portion of it to you in the form of interest on your investment.

• Example: The bank charges 10% per year on loans and pays you 3% per year on savings.

2. Investment Funds

• In a fund, the manager takes investors’ money and invests it in assets such as stocks, bonds or real estate.

• The return that the fund generates (whether through appreciation or income from these assets) is divided proportionally among investors, after deducting management fees.

• Example: You invest in a real estate fund, which rents out properties. The rent collected is distributed as dividends to those who left the money in the fund.

3. Public and Private Securities

• When you invest in bonds, you are lending money to the government (government bonds) or to companies (debentures).

• In return, these institutions pay a fixed or variable rate (interest) for “borrowing” your money.

• Example: You buy a government bond that pays 10% per year. This amount is paid because the government uses the money to finance projects.

4. Cryptocurrencies and “Staking”

• In the cryptocurrency market, staking coins means lending your coins to help validate transactions on the blockchain.

• In return, you receive a percentage as a reward, often paid in more cryptocurrencies.

• Example: You stake XRP and receive 5% per year in XRP.

Why do they pay?

Institutions need your money to move the economy or invest in profitable projects. They prefer to “rent” your money by paying a percentage of the profits rather than using only their own resources, which would be limited.

• The big players, or “whales”, move large volumes and have power over the market.

• Institutions pay percentages because they use the invested money to generate larger profits, sharing a portion with investors.

Thus, the market is like an ecosystem: “whales” move the ocean, and investors (small or large) take advantage of the currents created by them.

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