Binary Options Trading Volume in Japan Declines in September, Forex Steals the Show

According to data published by Financial Futures Association of Japan (FFAJ), binary options trading volume has dropped by 16% in

According to data published by Financial Futures Association of Japan (FFAJ), binary options trading volume has dropped by 16% in September, when compared to the previous month’s data. Foreign exchange trading volumes ballooned higher across major brokerages in the region. Apparently, the sharply increased volatility during the month of September has pushed more traders to traditional spot FX trading.

Japanese Binary Options Trading Volumes Chart, Source: FFAJ
Japanese Binary Options Trading Volumes Chart, Source: FFAJ

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According to sources close to Forex Magnates, binary options trading volume across the industry have in fact benefited from the general increase in volatility during the month of September. The case for more traders turning to traditional instruments can only be made for the Japanese market, as its structure is different and forex trading is very popular in the country.

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As a result, many traders who have chosen binary options to play the market during the times of low volatility might have returned to the traditional foreign exchange market in September. There is currently no clear trend indicating where we are heading next month, however, we should expect a slight rebound from here as the number of active accounts has actually risen.

Active binary options trading accounts have increased to 16,315, which is up by 4% month-on-month and an all-time high since official number reporting by the FFAJ started in December 2013. Another special factor during the month has been the departure of Planex Trade from the binary options business. The effect shouldn’t be material, since the company’s offering was added only this summer.

Volumes by Pair
Volumes by Currency Pair

Trading volumes by currency pair remained structurally unchanged with the bulk of the volumes read across the USD/JPY, GBP/JPY and the EUR/JPY, with the EUR/USD getting an additional boost from higher volatility throughout the month of September.

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