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Interpretation of data like Volume


banena

Question

Hi!

Many indicators use volume and other statistics. I was wondering what exactly these refer to.

Let's assume I am spread betting on shares.

Shares are traded e.g. at the New York stock exchange. That means there is a central institution that registers all trades, including price and volume.

Spread betting is a derived product so I am not actually trading the stock.

What does the volume (e.g. if I grab data through the REST API) in this case refer to? Volume of spread bets at IG or is it the actual volume of the underlying share traded at New York Stock Exchange? 

Things get even more indirect if I was spread betting on an index like US500, in this case I assume that volume would not have any meaningful interpretation about price movement at all?

 

Thanks a lot on advance!

 

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29 minutes ago, banena said:

Hi!

Many indicators use volume and other statistics. I was wondering what exactly these refer to.

Let's assume I am spread betting on shares.

Shares are traded e.g. at the New York stock exchange. That means there is a central institution that registers all trades, including price and volume.

Spread betting is a derived product so I am not actually trading the stock.

What does the volume (e.g. if I grab data through the REST API) in this case refer to? Volume of spread bets at IG or is it the actual volume of the underlying share traded at New York Stock Exchange? 

Things get even more indirect if I was spread betting on an index like US500, in this case I assume that volume would not have any meaningful interpretation about price movement at all?

 

Thanks a lot on advance!

 

Hi, this has been asked many times before and this is the best answer from IG I've seen on the forum since it started.

Note it's all a bit grey, stocks on multiple exchanges, markets with no central exchange at all etc. The important point is that the profile of the volume chart (bars higher/lower) from different sources has  good confluence rather than the actual numbers.

 

See Ludwik's reply 2 posts down.

 

 

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