IG client sentiment

IG Client Sentiment is a tool used by retail traders and investors to gauge the overall sentiment or emotions of other traders and investors in the financial market. It is provided by IG, one of the largest online trading platforms, and it reflects the real-time buying and selling activity of the platform's clients. It can provide valuable insights into market trends and can help traders and investors make more informed decisions.

Method

IG Client Sentiment is based on the aggregated data of the trades and positions of IG's client base. It reflects the buying and selling activity of the platform's clients, which includes retail traders and investors.

The tool provides a percentage of traders who are long (buying) or short (selling) on a specific market. It also provides an "extreme" indicator, which shows the level of bullish or bearish sentiment among traders, with a value of 0 indicating neutral sentiment and a value above or below 0 indicating bullish or bearish sentiment respectively.

In addition to that, the tool provides a "sentiment ratio" which is the ratio of long to short positions among traders, showing how many traders are long for every short position.

Applications

IG Client Sentiment has a wide range of applications in the financial market, including:

  1. Identifying market trends: By analyzing IG Client Sentiment, traders and investors can gain insight into whether the market as a whole is becoming more bullish or bearish based on the activity of other traders and investors. This can help them make more informed decisions about when to buy or sell a specific market.
  2. Identifying opportunities: By analyzing IG Client Sentiment, traders and investors can identify areas of the market where sentiment is particularly bullish or bearish. This can help them identify opportunities to enter or exit a position.
  3. Risk management: IG Client Sentiment can help traders and investors identify and manage risk by identifying areas of the market where sentiment is particularly extreme, indicating a high level of volatility.
  4. Diversification: By analyzing IG Client Sentiment, traders and investors can diversify their portfolio by investing in markets where sentiment is different from their current positions.

Conclusion

IG Client Sentiment is a valuable tool for understanding the emotions and activity of other retail traders and investors in the financial market. It can provide valuable insights into market trends and can help traders and investors make more informed decisions. However, it is important to note that IG Client Sentiment should be used in conjunction with other market analysis tools, such as technical analysis and fundamental analysis, in order to make more accurate predictions and informed decisions. Additionally, it is important to keep in mind that sentiment is just one aspect of evaluating a market, and it should be combined with other information such as economic indicators, news and events, and historical data to make investment decisions. Furthermore, it is important to note that IG Client Sentiment reflects the activity of retail traders, which can be affected by different factors than institutional traders or market makers. Therefore, it is important to consider the context and the source of the sentiment data when interpreting it.