GAIN Capital Reports Second Consecutive Month of Volume Declines
- Trading volumes at GAIN Capital continue lower in the aftermath of the ESMA’s new regulations
GAIN Capital has just reported on the company’s trading volumes metrics for September. The company is marking a second consecutive monthly decline in the aftermath of the new regulatory restrictions on Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term in Europe.
The month-on-month decline is particularly unusual for the company for September. Traditionally the month has been upbeat for brokers due to the seasonally low activity in August.
As to the numbers, the total trading volume executed by retail clients last month was $149.6 billion. The figure is lower by 26.2 percent when compared to September 2017 and down by 14.3 percent from August this year.
Looking at the average daily numbers, GAIN Capital marked $7.5 billion per day a more modest decline of 1.3 percent month-on-month and by 21.9 percent year-on-year.
ESMA Bites
The ongoing adaptation of retail brokers to the new European regulatory environment is hitting trading volumes hard. GAIN Capital owns two major trading brands: 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 Read this Term.com and Citi Index. The latter is particularly heavily exposed to the UK market.
The changes in leverage which brokers implemented since the beginning of August are having a big impact. The three-month trailing number of active clients at GAIN Capital declined by 2.1 percent from August and by 13 percent from September 2017 to 71,597.
Offsetting the decline in the OTC trading space, the futures segment registered an increase. At 554,687 contracts traded, the figure was higher by 16 percent year-on-year. The number was still lower when compared to August by 3.7 percent.
Active futures accounts remained stable at 7,550, which is flat month-on-month and lower by 6.3 percent when compared to last year.
GAIN Capital has just reported on the company’s trading volumes metrics for September. The company is marking a second consecutive monthly decline in the aftermath of the new regulatory restrictions on Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term in Europe.
The month-on-month decline is particularly unusual for the company for September. Traditionally the month has been upbeat for brokers due to the seasonally low activity in August.
As to the numbers, the total trading volume executed by retail clients last month was $149.6 billion. The figure is lower by 26.2 percent when compared to September 2017 and down by 14.3 percent from August this year.
Looking at the average daily numbers, GAIN Capital marked $7.5 billion per day a more modest decline of 1.3 percent month-on-month and by 21.9 percent year-on-year.
ESMA Bites
The ongoing adaptation of retail brokers to the new European regulatory environment is hitting trading volumes hard. GAIN Capital owns two major trading brands: 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 Read this Term.com and Citi Index. The latter is particularly heavily exposed to the UK market.
The changes in leverage which brokers implemented since the beginning of August are having a big impact. The three-month trailing number of active clients at GAIN Capital declined by 2.1 percent from August and by 13 percent from September 2017 to 71,597.
Offsetting the decline in the OTC trading space, the futures segment registered an increase. At 554,687 contracts traded, the figure was higher by 16 percent year-on-year. The number was still lower when compared to August by 3.7 percent.
Active futures accounts remained stable at 7,550, which is flat month-on-month and lower by 6.3 percent when compared to last year.