GMO Click August Volumes Back Below $1 Trillion

Following back to back months of record breaking monthly volumes above $1 trillion, GMO Click, the world’s largest retail broker by volume has reported a decline in its August activity. According to the broker, during August, volumes fell 25% to $812 billion, breaking four consecutive months of rising record figures. The decline occurs as the Japanese yen was more or less range bound during the month, after an active first half of the year. Similar results were seen at the TFX, where volumes of Japanese yen crosses fell across the board.

In addition to the combination of summer trading and a decrease in 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, a change in trading conditions may have also attributed to GMO's decline in August volumes. According to 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 Magnates sources, the broker increased its minimum spread by 0.1 pips, which has a direct effect on scalper originated volume. As spreads in Japan are well below rates in the rest of the world it has triggered an increase of scalper related volumes. In GMO's case, our source believes that the broker may have experienced losses from major traders; thus triggering a change in trading conditions.

Looking ahead, with GMO Click figures falling back below $1 trillion, eyes are now on DMM Securities, Japan and the world’s second largest retail broker. The company is expected to release its August trading figures within the next few days.