As cases increase and volumes rebound in June, will we see further heightened volatility?
As cases of COVID-19 continue to increase across the world, many people are fearing a so-called second wave of the coronavirus pandemic which could lead to more strict lockdown measures.
As Finance Magnates has well documented, the coronavirus pandemic saw a significant uptick in Volatility in the trading markets. This then led to an increase in trading volumes, which saw many trading providers record historical trading volumes.
However, since the highs seen in the final week of February and into March of 2020, volatility has been tapering off. That was, until June, which has provided an uncharacteristic surge in volumes for brokers across the world.
As Finance Magnates reported, a number of trading providers, such as retail broker Gaitame, Saxo Bank and GMO Click were among the many brokers to see solid trading volumes in June, beating the summer lull which usually befalls FX volumes in June and July.
The resurgence of higher trading volumes also coincides with the total number of people to test positive for COVID-19 surpassing 10 million, according to Johns Hopkins University. This has been largely led by an uptick in cases across the United States, Brazil, and Russia.
Are brokers prepared for more volatility?
Whilst it's debatable whether we will see the second wave of COVID-19, as many would argue that the first wave never ended, we could see another peak of volatility within the foreign exchange (Forex) markets. So what are brokers doing to prepare for further heightened volatility?
Speaking to Finance Magnates, Pavel Spirin, the Chief Commercial Officer at Skilling said: "We have built a robust infrastructure to eliminate or minimise extreme market conditions’ impact on our clients’ trading. We have practical tools in place, like reduced leverage or temporarily suspending select markets, that we can utilise to minimise risk. However, our main tool is proactive communication with our clients and a warning system that would prewarn and prepare our clients for any adverse market conditions."
According to Denis Golomedov, Chief Marketing Officer at RoboForex, broker’s must be ready for any stock fluctuations and volatility in the capital markets.
“It is unlikely that we will soon see volatility levels similar to those that we faced in March. Investors have been living with the understanding that the virus is not conquered and the second wave is possible, for several months, while economies are drained regardless of various support measures of monetary authorities,” he told Finance Magnates.
“At the same time, it is perfectly obvious that markets are ready to buy, and they will make their desire come true as soon as they see some decent perspective.”
If volatility does return, where will traders go?
If we do see another wave of heightened volatility, similar to that seen back in March, where will traders go? According to Golomedov, safe havens assets is where traders will flock to.
“In the case volatility increases, the first thing that investors will pay attention to will be the so-called protective assets. They include precious metals: gold, for example, offers the widest perspectives, same as silver or platinoids,” he highlighted.
“Also, such periods awakens interest to safe-haven currencies - the US dollar, Japanese yen, Swiss franc. The crypto sector may also answer the bell; there is definitely potential not revealed there.”
"We are constantly monitoring the market and the geopolitical developments around the world and adjust our systems accordingly," added Spirin. "There are a few developments on the global geopolitical front at the moment that we’re following very closely and are prepared to act on any outcome."
As cases of COVID-19 continue to increase across the world, many people are fearing a so-called second wave of the coronavirus pandemic which could lead to more strict lockdown measures.
As Finance Magnates has well documented, the coronavirus pandemic saw a significant uptick in Volatility in the trading markets. This then led to an increase in trading volumes, which saw many trading providers record historical trading volumes.
However, since the highs seen in the final week of February and into March of 2020, volatility has been tapering off. That was, until June, which has provided an uncharacteristic surge in volumes for brokers across the world.
As Finance Magnates reported, a number of trading providers, such as retail broker Gaitame, Saxo Bank and GMO Click were among the many brokers to see solid trading volumes in June, beating the summer lull which usually befalls FX volumes in June and July.
The resurgence of higher trading volumes also coincides with the total number of people to test positive for COVID-19 surpassing 10 million, according to Johns Hopkins University. This has been largely led by an uptick in cases across the United States, Brazil, and Russia.
Are brokers prepared for more volatility?
Whilst it's debatable whether we will see the second wave of COVID-19, as many would argue that the first wave never ended, we could see another peak of volatility within the foreign exchange (Forex) markets. So what are brokers doing to prepare for further heightened volatility?
Speaking to Finance Magnates, Pavel Spirin, the Chief Commercial Officer at Skilling said: "We have built a robust infrastructure to eliminate or minimise extreme market conditions’ impact on our clients’ trading. We have practical tools in place, like reduced leverage or temporarily suspending select markets, that we can utilise to minimise risk. However, our main tool is proactive communication with our clients and a warning system that would prewarn and prepare our clients for any adverse market conditions."
According to Denis Golomedov, Chief Marketing Officer at RoboForex, broker’s must be ready for any stock fluctuations and volatility in the capital markets.
“It is unlikely that we will soon see volatility levels similar to those that we faced in March. Investors have been living with the understanding that the virus is not conquered and the second wave is possible, for several months, while economies are drained regardless of various support measures of monetary authorities,” he told Finance Magnates.
“At the same time, it is perfectly obvious that markets are ready to buy, and they will make their desire come true as soon as they see some decent perspective.”
If volatility does return, where will traders go?
If we do see another wave of heightened volatility, similar to that seen back in March, where will traders go? According to Golomedov, safe havens assets is where traders will flock to.
“In the case volatility increases, the first thing that investors will pay attention to will be the so-called protective assets. They include precious metals: gold, for example, offers the widest perspectives, same as silver or platinoids,” he highlighted.
“Also, such periods awakens interest to safe-haven currencies - the US dollar, Japanese yen, Swiss franc. The crypto sector may also answer the bell; there is definitely potential not revealed there.”
"We are constantly monitoring the market and the geopolitical developments around the world and adjust our systems accordingly," added Spirin. "There are a few developments on the global geopolitical front at the moment that we’re following very closely and are prepared to act on any outcome."
Retail Broker Acetop UK Quadruples 2023 Revenue, Significantly Narrows Losses
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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