FXSpotStream Posts Record Trading Volumes Amid Continuing FX Volatility

FXSpotStream posted a record month in March, reaching $606 billion in trading volumes. The month was preceded by two other strong reports in January and February. Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term trading has picked up materially since the start of the year, as Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term across multiple asset classes spiked higher in the first quarter of 2018.

Overall, trading volumes in March were the company’s best ever. The figure rose by 5.1 percent from February and by a staggering 40 percent since March 2017. Looking at the Average Daily Volumes metric, the number was at $27.6 billion, which is the second highest after February 2018. Adjusted for the Good Friday holiday last week, it was only 1 percent lower than in the preceding month.

Broad-Based rise in FX volatility continues

March trading was led by political turmoil in Europe, the UK and the US. News related to trade wars have been dominating financial markets, driving excess volatility across a multitude of asset classes.

The first quarter of the year was dominated by a spike in volatility that started with FX and translated into equities and commodities in February. The second quarter of 2018 started with another blast, as the Dow Jones Industrial Average plunged 750 points only to recover in the later part of the day and close circa 500 points lower on the day.

First quarter results look promising for FX industry

The broad FX industry should be looking at record income in the first quarter of the year as active traders have been returning to the market. Volumes have increased materially, with FXSpotStream reporting a rise in Average Daily Volumes quarter-on-quarter by about 33.5 percent.

When compared to the first quarter of 2017, total volumes were higher by about 44 percent.

FXSpotStream is not alone in posting massive gains in the first quarter of the year. Brokers and ECNs have been performing materially better since the start of 2018. Regulatory challenges ahead, the industry is set to beef up its cash balances ahead of what seems to be the biggest regulatory overhaul for the industry since the introduction of Dodd Frank in the US.