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How is % spread calculated?


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On watchlist's  there is the option to include spread and percentage spread but the percentage spreads figure seems to bear no relation to either the sell, buy or spread figure. Can anyone tell me how this is calculated and what it represents?

Thanks in anticipation.

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21 minutes ago, Cadair said:

On watchlist's  there is the option to include spread and percentage spread but the percentage spreads figure seems to bear no relation to either the sell, buy or spread figure. Can anyone tell me how this is calculated and what it represents?

Thanks in anticipation.

Hi, the percentage should be referring to price change since market open not spread.

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Guest diamondbullet
2 hours ago, Caseynotes said:

Hi, the percentage should be referring to price change since market open not spread.

Hi I think op was questioning the % spread column, but you've answered re the % change. I think % spread = (offer - bid) / mid, but the way it's quoted on the watchlist is really weird. some stocks it quotes the % (i.e spread of 0.04 = 0.04%), other stocks it quotes basis points (i.e. spread of 1.2 = 0.012%), so they are tricky to compare. similarly, the spread is not always quoted in the same units as the price. confusing.

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The Percentage Spread is the spread divided by the price multiplied by 100

 

EG                           FTSE 100                              1 divided by 6726    =     0.0001487 x 100 = 0.0147

which is rounded to 0015

 

 

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10 minutes ago, kabuki said:

The Percentage Spread is the spread divided by the price multiplied by 100

 

EG                           FTSE 100                              1 divided by 6726    =     0.0001487 x 100 = 0.0147

which is rounded to 0015

 

 

oh ok, thanks.

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Guest Musing Market

There does seem to be an error with shares listed in GBP (sterling pounds) rather than GBX (sterling pence), this mainly impacts ETFs from the likes of Vanguard and some iShares.  "% Spread" is 100 times too much for GBP listed shares. Presumably IG's system is calculating the spread as if these listings were in pence rather than pounds.  

Just looking at my watchlists: VUKE, VMID and VWRL have a spread percentage 100x what they actually are while ISF and VMID show the correct % spread, ISFD does not.

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