CME FX Trading Soars In January
Driven by interest in the Yen and Euro, FX trading at the CME accelerated. For the month, the exchange reported total futures volume of 17,696,362 (900,000/day) contracts traded. The figure was 25% above January 2012 levels and a 13.9% increase from what was a solid December. The clear correlation between the spike in 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 and trading volumes shows that traders continue to view FX as a tradable asset class. Traders jumped back into the asset class as the Swiss National Bank had intervened in the Franc during the month, a rotation back into the Euro occurred, and the Yen continued to weaken. As such, systematic momentum traders have been returning driving volumes higher in currencies. In addition to the 45.2% increase in Yen trading volumes, the currency hit records for monthly volume and open interest (198,892 lots, $27 billion) during the month.
In dollar terms, average daily volume (ADV) for FX was $114 billion. The CME Group also reported that February has started off rather well will with last Friday's figures (Non Farm Payroll day) hitting $172 billion in FX volume. In addition, FX Options trading hit $18.8 billion last Friday, the highest one day total since May 2011.
While we reported earlier that broker’s had mentioned to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Magnates that January had begun strong, it will be interesting to see how well the OTC ECN venues fared in comparison to the CME.
Driven by interest in the Yen and Euro, FX trading at the CME accelerated. For the month, the exchange reported total futures volume of 17,696,362 (900,000/day) contracts traded. The figure was 25% above January 2012 levels and a 13.9% increase from what was a solid December. The clear correlation between the spike in 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 and trading volumes shows that traders continue to view FX as a tradable asset class. Traders jumped back into the asset class as the Swiss National Bank had intervened in the Franc during the month, a rotation back into the Euro occurred, and the Yen continued to weaken. As such, systematic momentum traders have been returning driving volumes higher in currencies. In addition to the 45.2% increase in Yen trading volumes, the currency hit records for monthly volume and open interest (198,892 lots, $27 billion) during the month.
In dollar terms, average daily volume (ADV) for FX was $114 billion. The CME Group also reported that February has started off rather well will with last Friday's figures (Non Farm Payroll day) hitting $172 billion in FX volume. In addition, FX Options trading hit $18.8 billion last Friday, the highest one day total since May 2011.
While we reported earlier that broker’s had mentioned to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Magnates that January had begun strong, it will be interesting to see how well the OTC ECN venues fared in comparison to the CME.