CFD Client Sentiment Analysis

2 minute read
|8 Apr 2024
Table of contents
  • 1.
    Using Client Sentiment
  • 2.
    Different Client Views
  • 3.
    Position Value
  • 4.
    Related Products

The client sentiment feature on the Next Generation platform provides insight into what other CMC clients are doing—both by the number of clients (buying or selling) and by position value. The combined view allows comparison between all clients and the profitable clients. In this article the client sentiment feature will be explained in detail.

Using Client Sentiment

A view can be set up specifically for client sentiment and it is always product-specific. There are quick links to open order tickets, charts, and other features from the menu.

Key Information

Arrows indicate changes in sentiment. For example, a 6% drop shows that sentiment has decreased since 10pm last night. The sentiment updates every minute, meaning it can change throughout the session. Some important terms to get familiar with are:

Product Name: the name of the product being tracked.

Client Numbers: means how many clients are trading a particular product. This tells the percentage of clients that are buying versus selling. For example, if 10 clients are trading, with 5 long and 5 short, the sentiment is split 50/50.

Different Client Views

The data updates in real-time and it is essential to monitor shifts. Clients are divided into two categories in this feature:

All Clients: shows data for all clients at CMC Markets.

Top Clients: this view focuses on clients with at least three months of trading history and who have made a profit, excluding spreads and commissions.

There is also a combined display for both "All Clients" and "Top Clients" data. The top clients are highlighted in yellow, making it easy to compare their activity with all clients.

Tips:

Spot Differences: Look for products where there is a significant difference between All Clients and Top Clients. For example, on gold, All Clients are 63% buyers, but Top Clients are 52% buyers. This might indicate a shift in sentiment.

Track Changes: Look for products where sentiment has changed a lot since 10pm last night. For example, gold had a 15% drop earlier, now down to 10%. A big change like this could be worth investigating.

Position Value

This section shows where the larger positions are. If one client has a much larger position than others, it will affect the overall sentiment. For instance, 23% of positions may be buyers, but 77% could be sellers, based on the total value of the positions.

Related Products

Under this section, products that are also being traded by clients of the current product will be shown. Clicking on these products will allow access to further data.

Learn more about CFD platform features with our platform guides and keep up to date with market news and analysis.

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