volume as an indicator in day trading

breaktwister

Junior member
19 0
Hi folks, I am new to day-trading, I am UK based and intend to trade shares via spreadbets as I only have a small account to begin with. So far I have been reading online and watching some videos, one of which was stressing the importance of increased volume to confirm a trend.

I have been poking around ig.com but it seems that volume is not included as an indicator within their included chart package (ProRealTime); I found this while trying to figure it out: Please note: We are unable to display volume data on spread betting charts because our prices are different to the underlying price for which the volume data is associated.

Does this mean that folks who want to see live traded volume need to have a separate charting package or is there something simple I am missing? The ProRealTime charts seem quite comprehensive so it is a little strange that you cannot view the volume traded of the underlying security.
 

TechQuant

Well-known member
264 52
It means if you're spreadbetting, volume on your SB's price is not indicative. Yes, you need a feed with volume on the underlying on which your SB dream up a price.
 

tokyojoe

Established member
874 289
Hi folks, I am new to day-trading, I am UK based and intend to trade shares via spreadbets as I only have a small account to begin with. So far I have been reading online and watching some videos, one of which was stressing the importance of increased volume to confirm a trend.

I have been poking around ig.com but it seems that volume is not included as an indicator within their included chart package (ProRealTime); I found this while trying to figure it out: Please note: We are unable to display volume data on spread betting charts because our prices are different to the underlying price for which the volume data is associated.

Does this mean that folks who want to see live traded volume need to have a separate charting package or is there something simple I am missing? The ProRealTime charts seem quite comprehensive so it is a little strange that you cannot view the volume traded of the underlying security.

Hi BT, be very wary of SB, the "in hours prices" are ok to a degree, but you will need to learn to interpret their price quotes by also cross referencing the actual Underlying market prices (Bloomberg/advfn or similar) .... ps, be aware IG also use bloomberg terminal.

When their price quote is too far off the UL, I simply stay away. But to be fair they are often very close. The problems start once you place an order, if you are asleep & not keeping your eye on the ball & you open a position in consolidation areas too soon, you are opening yourself to the potential chop up.

You are trading on their book only, especially the vast majority who are B book traders, so the orders stays on the SB's own system.

SB do not need to be too crafty because the vast majority of people make it easy for them, it's a good idea to stay small £pp for a long time & learn how it fits together.

As with everything there are up sides & downsides, SB is a good vehicle to get a feel for the markets as long as you keep a very good beady eye on the real world markets.
 
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breaktwister

Junior member
19 0
Thanks guys, I will be keeping it small while I test the water.
 

Splitlink

Legendary member
10,850 1,234
Dreadful, isn't it? You'd think they could afford a proofreader who might tell them that it should be "different from the underlying price with which the volume data is associated". :( :-0

Here's another one! My word, we do have a lot of grammatical errors, today! !
don't know what the world is coming to. Or should it be "to where the world is coming"? (or going)

Actually, I do. I think it's coming to England! :),Good job, too, you insular tribe!
 

Dick Lexic

Veteren member
4,954 124

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gerryg

Established member
900 7
Hi folks, I am new to day-trading, I am UK based and intend to trade shares via spreadbets as I only have a small account to begin with. So far I have been reading online and watching some videos, one of which was stressing the importance of increased volume to confirm a trend.

I have been poking around ig.com but it seems that volume is not included as an indicator within their included chart package (ProRealTime); I found this while trying to figure it out: Please note: We are unable to display volume data on spread betting charts because our prices are different to the underlying price for which the volume data is associated.

Does this mean that folks who want to see live traded volume need to have a separate charting package or is there something simple I am missing? The ProRealTime charts seem quite comprehensive so it is a little strange that you cannot view the volume traded of the underlying security.

Shouldn't the SB prices be mirrored from exchange-traded share prices?? I'm almost sure SB brokers are a counterparty to your orders and make market to you. It'd be better to try futures trading or at least CFD's, for example according to response from my broker they get live feed from CBOT on US commodities..
 

tokyojoe

Established member
874 289
Shouldn't the SB prices be mirrored from exchange-traded share prices?? I'm almost sure SB brokers are a counterparty to your orders and make market to you. It'd be better to try futures trading or at least CFD's, for example according to response from my broker they get live feed from CBOT on US commodities..

Hi gerryg, if you are trading the normal London/European time, it wouldn't matter if they are counter party to you, arbitrage aside, they will not be able to wander too far from UL prices, people who have done their homework are savvy to price quotes these days, therefore if you are wrong in your trade decision at the point of entry, you would be wrong no matter who you used imho.

With SB it is vital to perfect your timing without having to use ridiculously wide stop losses.
 
 
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