FXCM Trading Metrics Stabilize after Volatility Comes Back in May
- The trading volumes of FXCM rebounded sharply as election results in France drove some volatility.
Online foreign exchange and CFDs brokerage FXCM has reported its trading metrics for the month of May. The company’s clients transacted a total of $213 billion during the month. The figure is higher by 21 percent when compared to April and lower by 21 percent year-on-year.
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The figures have been consistent with broad industry trends, catalyzed by the French election and political turmoil in the US and the UK. Despite increased 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 in EUR pairs, the moves across the currency markets throughout the last month were still subdued by historical standards. With the traditional summer lull for volumes coming up, brokers have been facing increased pressure.
FXCM reported average daily volumes (ADV) increasing 6 percent month-on-month to $9.3 billion in May. The figure was lower by 24 percent when compared to May last year. The number of client traders also ticked lower with the figure reaching 334,536 daily, a metric that is lower by 4 percent when compared to April and down 32 percent year-on-year.
The number of active accounts declined to 128,242, which is lower by 1,124 when compared to April and by 5,141 year-on-year. Tradable accounts rose by 412 from the end of April, but were lower by 5,882 when compared to a year ago.
Recent trends in trading volumes are showing that the market remains heavily influenced by volatility and the multi-year lows in this regard could be forcing a consolidation in the industry. Brokers which have significant cash reserves are more flexible when it comes to meeting operational needs.
Attracting new clients in times of low volatility has historically been difficult for brokers. Aside from Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, few asset classes have been actively traded since the start of the year, the notable exception being pockets of volatility around major political and economic events.
Online foreign exchange and CFDs brokerage FXCM has reported its trading metrics for the month of May. The company’s clients transacted a total of $213 billion during the month. The figure is higher by 21 percent when compared to April and lower by 21 percent year-on-year.
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The figures have been consistent with broad industry trends, catalyzed by the French election and political turmoil in the US and the UK. Despite increased 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 in EUR pairs, the moves across the currency markets throughout the last month were still subdued by historical standards. With the traditional summer lull for volumes coming up, brokers have been facing increased pressure.
FXCM reported average daily volumes (ADV) increasing 6 percent month-on-month to $9.3 billion in May. The figure was lower by 24 percent when compared to May last year. The number of client traders also ticked lower with the figure reaching 334,536 daily, a metric that is lower by 4 percent when compared to April and down 32 percent year-on-year.
The number of active accounts declined to 128,242, which is lower by 1,124 when compared to April and by 5,141 year-on-year. Tradable accounts rose by 412 from the end of April, but were lower by 5,882 when compared to a year ago.
Recent trends in trading volumes are showing that the market remains heavily influenced by volatility and the multi-year lows in this regard could be forcing a consolidation in the industry. Brokers which have significant cash reserves are more flexible when it comes to meeting operational needs.
Attracting new clients in times of low volatility has historically been difficult for brokers. Aside from Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, few asset classes have been actively traded since the start of the year, the notable exception being pockets of volatility around major political and economic events.