IG's platform intraday volume

[Guest s&p]

Hello,

I noticed that the level of intraday volume on IG's standard platform is different from other sites so how representive is the volume compared to the market as a whole?

Is IG's volume made up of just CFD's or the whole market?

Cheers

 

[Ludwik Chodzko-Zajko IG]

It depends. 

For shares the volume displayed would be that traded on the primary underlying exchange ( so, for example, with BARC it would be volume traded on the LSE, but not BATS, Chi-X etc).

For other exchange traded products ( index futures, commodities, etc.) we'd use, broadly speaking, the volume traded in the front month underlying from the relevant exchange. So currently for the Germany 30 DFB we show volume traded in the Eurex DAX Sep18 (GXU8), and we'll move between contracts (so to DEC18, MAR 19, etc) as usual on expiry. 

With FX the OTC nature of the market means it's not possible to calculate, and therefore display, traded volume for the overall market. Our indicator shows the number of changes (ticks) in our aggregate bid/offer, which gives you a rough idea of volume.

[Guest Nipun]

@Ludwik Chodzko-Zajko IG

Would appreciate a bit more clarification on this.

If we consider CFD/shares only

For example Netflix at the end of trading on Aug 10th 2018 shows as 2182376 on IG CFD platform. However, the volume shown in Yahoo Finance is 4,337,481

Why is this ?

 

 

 

[Caseynotes]

Brokers and platforms calculate volume in different ways depending on asset class and which exchanges they are traded on and many assets are trades on more than one exchange, as was mentioned above.

The important aspect of volume is the profile of the volume chart, that must be consistent and give as true a representation of the relationship between time periods as possible.

See the trading view vol verses the IG vol below, the profile matches though the numbers and colours of the bars don't, this is quite common. It is the profile that is important.

 

[Guest Nipun]

Thanks @Caseynotes

[The_Alnchemist]

Hello @Caseynotes. I Understand what you are saying but I have a particular discrepancy where the volume profiles are quite different.

This is shown in the attached image for Kier Group. The one on the left is from the IG share dealing platform chart and the one on the right is from Investing.com. One can see that while the volume profiles are broadly similar there are big differences between the two for the last day which was 14-Jun where IG is showing a volume of just over 1.3M and Investing.com is showing a volume of just over 11M. 

I don't know which one to believe. Or are they both correct?