Jump to content

Adding the % Range column to a watchlist

Sign in to follow this  
DanielaIG

  • You can now add % Range to a watchlist on the web trading platform
  • % Range is the difference between the high and low quotes of the session divided by the current mid price
  • This can be used to show a relative volatility on the asset and its potential trade opportunity
  • % Range has a number of advantages over % Change and Range in points

How to add % Range

A new function added to the web trading platform is % Range, a measure of volatility that will enable you to sort the markets in your watchlists by price range movement. To add this functionality to a watchlist, click on the three lines that are positioned on the top left-hand corner next to the word 'Market', where a drop down menu will appear. Click on the % Range buttons to activate it.

2018-11-30 15_23_10-IG Trading Platform _ Spread Betting.png

 

What is % Range?

This indicator is intended to indicate the price range a product has had during the trading session and is calculated in the following way:

% Range= (High price – Low price) / Mid price

By dividing the range (the difference between the high and the low prices) by the mid-price (the current market value of an asset) the value we get is a how much the range of the trading session is over the mid-price, as a percentage. The higher the figure, the higher the volatility during the trading session, and potentially a greater opportunity to take advantage of price movements.

If the price has seen little movement, the highs and lows will be close together, meaning that the difference between the two will be small and will represent only a small percentage of the mid-price. If, on the contrary, the range for the trading session is very wide, the value will represent a higher percentage of the mid-price, therefore indicating that there has been higher volatility.

 

Advantages of % Range over % Change and Range

  • % Change tells you the current difference in price as a percentage over the closing price of the previous day.
    • It is a good measure to understand where the current price stands in regard to where it closed in the previous session.
    • However, if a certain asset experienced high volatility during the session but then came back to where it closed the previous day, it will not give any insight of the volatility it has experienced.

 

  • Range is a good measure of volatility, but the amount of points between the high and low price can be more or less significant depending on the price of the product.
    • For example, a 200 point range is not the same for a market priced at around 400 than to a market priced around 12000.
    • % Range overcomes this as it factors in the price of an asset by brining it's mid-price into the equation. The lower the mid price, the more significant price movements will be.

 

Sign in to follow this  


0 Comments

Recommended Comments

There are no comments to display.

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Add a comment...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Blog Statistics

    • Total Blogs
      3
    • Total Entries
      386
  • Our picks

    • Another blow to economic growth - EMEA Brief 15 Feb
      Weak retail figures in the US have spilled over to most major stock markets, with European stocks set to open lower this morning. The 1.2% decline in retail sales for the month of December, the biggest drop in almost ten years,  have brought new fears that we are facing a global economic slowdown. The DJIA closed 104 points lower at 25,439.39, the S&P 500 closed 7 points lower at 2,745.73, whilst the Nasdaq managed to close in the positive with a gain of 6.6 points at 7,426.96.
      • 0 replies
    • A little bit of everything - APAC brief 15 Feb
      A little bit of everything: It certainly wasn’t the highest-impact day market participants have experienced so far this year, but there was a spoonful of everything, thematically speaking that is, driving the macro-economic outlook for markets in 2019. To keep it high level, there was a series of significant growth-related data released out of all three of the world’s major economic geographies – China, Europe and China – plus a healthy smattering of geopolitics and corporate news to keep traders interested. Only, if you look at the price action, one might say that it didn’t amount to terribly much. Global equities are taking the middle road, posting a mixed day, as Wall Street creeps towards its close at time of writing; though some shifting in currency, rates, bonds and commodities markets has occurred.
      Markets immune to trade-war headlines: Fresh trade war headlines are at the top of the list of headline risks, however in contrast to what’s been seen in the past, the reactions have been muted. Arguably, and barring any news that hints at a true resolution in the trade war, stories that the US and China are getting along just fine are becoming (relatively) ineffectual. Yesterday saw the news that the Trump administration is considering pushing the White House imposed March 1 deadline for trade negotiations back another 60 days. The developments saw the standard risk assets shift – Australian Dollar-up, Asian stocks-up, US futures-up, commodities-up – but compared to the massive relief rallies seen in the past, the price action indicated a market that’s wanting more than just piecemeal developments in trade-negotiations.
      • 0 replies
    • Post in Bonds and Gilts
      "If one looks at the German Bund chart then it looks very interesting indeed. The trend is upwards and the price action is supporting this over the past 12 months which could possibly mean there has been a shift in capital and strategy for some of the largest players in the bond market." Join the debate.
  • Latest Forum Topics

×