Trade Volumes - shares and ETF

[Figgsey]

Hi all,

I have been comparing trade volumes as displayed on the web application using the Volumes indicator.

I then compared this to other information about the LSE order book. Not Level 2 but still buy/sell confirmations.

My question is this..

Is the IG Index indicator reflective of trade volumes with respect to only IG Index customers or is this information reflective of the market (all LSE orders)?   

Many thanks

Fig

[dmedin]

For some reason IG and DailyFX never talk about volume, and they don't support it in PRT for anything but shares and ETFs.  That makes me think that the volume for shares are genuine, while 'tick volume' is just numbers generated from IG's customers' trades, same as client sentiment only measures the sentiment of people trading in IG's 'book making' system.

Edited November 30, 2019 by dmedin

[dmedin]

Hmm,  maybe not.

 

[Caseynotes]

Volume data is a tricky one as it can be collected in so many different ways so the figures never match between different sources but the profile usually does. Also be aware that the data takes time to collect and collate and the data shown at the end of day might not be the same as mid next day. This is a post from IG on this topic from a previous thread.

 

[Figgsey]

Thank you both for your help with this one. Yes it is tricky and perhaps the best (safe) working assumption is to assume that it is not a reliable indicator of "true" volumes traded on LSE.

[Caseynotes]

8 hours ago, Figgsey said:

Thank you both for your help with this one. Yes it is tricky and perhaps the best (safe) working assumption is to assume that it is not a reliable indicator of "true" volumes traded on LSE.

so yes the volume numbers will depend on how they are collected but the resulting volume profiles should be well correlated and that's what people tend to concentrate on.

[Kodiak]

Think i read somewhere that the volume on DAX CFD was from FDAX, is this correct?

 

 

"Our multi-venue technology combines prices from primary exchanges like the LSE, with MTF data from BATS Chi-X Europe"

https://www.ig.com/uk/pricing-execution

 

[dmedin]

I'm not sure how valuable tick volume really is, if all it reflects is IG client activity.  Are most of IG's clients retail and individuals?  If so then major moves by big players such as banks and money makers will not be reflected in volume.

Edited December 2, 2019 by dmedin

[Caseynotes]

17 hours ago, dmedin said:

I'm not sure how valuable tick volume really is, if all it reflects is IG client activity.  Are most of IG's clients retail and individuals?  If so then major moves by big players such as banks and money makers will not be reflected in volume.

A small percentage of IG business and individual clients are responsible for the majority of the traded volume while a large percentage of clients are responsible for low volume and the high failure rate.

[dmedin]

2 hours ago, Caseynotes said:

a large percentage of clients are responsible for low volume and the high failure rate

[Caseynotes]

47 minutes ago, dmedin said:

70 odd percent of IG clients are perpetually trying to short the US indices while 74% of IG clients lose money, could they be related I wonder 🤔. If your long term bias leads you to being right just one day every 2 months it's just not going to work, stands to reason.

So a large % of IG clients are short but are using minimal volume while a only a small % of IG clients actually use large volume, so volume activity is going to tell more than % of clients short or long.