Saxo Bank Volumes Slump in February despite Record Client Deposits
- The Danish multi-asset brokerage published its monthly numbers for February, stating that it had experienced growth in new client numbers of 24% when compared to last year’s figures for the same period.
According to data released by the Danish multi-asset brokerage, Saxo Bank, trading volumes throughout the month of February have materially declined when compared to the first month of the year. The average daily trading volume (ADV) slumped by 37 percent to $9.0 billion.
The total trading volume declined 40 percent to $179 billion, marking a multi-year low. The decline comes during a challenging month for the foreign exchange industry 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 has declined materially in major currency pairs.
Despite dwindling volumes, client collateral deposits at Saxo Bank have increased during the month of February marking the second highest month since November 2014 in U.S. dollar terms ($11.09 billion) and an all-time high when denominated in Danish krone (DKK 73.9 billion), which is the currency which Saxo Bank uses when reporting financials.
Commenting on the decline in trading volumes, Saxo Bank’s Head of Markets, Claus Nielsen, said, "Since its peak in mid-January, market volatility has decreased. You can use EUR/USD 1 month as a reference. EUR/USD volatility topped at 14% and is now back at 9%."
"We still expect firm volatilities over the coming months and to reflect this we have during January and February increased various margin requirements on a number of products including Foreign Exchange in order to protect our clients,” he commented on Saxo Bank's recent changes in leverage levels on certain products.
Commenting on record client deposits, Mr. Nielsen said, “Since January, we have seen a fresh inflow of clients and clients' collateral deposits for trading are at a record-high, emphasising that more than ever, traders and investors require a safe environment for their funds combined with access to a robust multi-asset Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term and we can give them that.”
According to data released by the Danish multi-asset brokerage, Saxo Bank, trading volumes throughout the month of February have materially declined when compared to the first month of the year. The average daily trading volume (ADV) slumped by 37 percent to $9.0 billion.
The total trading volume declined 40 percent to $179 billion, marking a multi-year low. The decline comes during a challenging month for the foreign exchange industry 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 has declined materially in major currency pairs.
Despite dwindling volumes, client collateral deposits at Saxo Bank have increased during the month of February marking the second highest month since November 2014 in U.S. dollar terms ($11.09 billion) and an all-time high when denominated in Danish krone (DKK 73.9 billion), which is the currency which Saxo Bank uses when reporting financials.
Commenting on the decline in trading volumes, Saxo Bank’s Head of Markets, Claus Nielsen, said, "Since its peak in mid-January, market volatility has decreased. You can use EUR/USD 1 month as a reference. EUR/USD volatility topped at 14% and is now back at 9%."
"We still expect firm volatilities over the coming months and to reflect this we have during January and February increased various margin requirements on a number of products including Foreign Exchange in order to protect our clients,” he commented on Saxo Bank's recent changes in leverage levels on certain products.
Commenting on record client deposits, Mr. Nielsen said, “Since January, we have seen a fresh inflow of clients and clients' collateral deposits for trading are at a record-high, emphasising that more than ever, traders and investors require a safe environment for their funds combined with access to a robust multi-asset Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term and we can give them that.”