GMO Click’s December Statistics Plunge, FXNeo Vols at 2014 Lows
- FXNeo's December volumes fell to levels not seen since August 2014.
GMO Click has released its latest disclosure of monthly trading volumes for the month ending December 2017. Of particular note was that the FXNeo platform’s volumes plunged to a new yearly low, underscoring the weakest reading in a month at the venue since 2014.
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Volumes were largely lower across most other brokerages in the industry, with Japan being no exception. Most venues saw a consolidation of FX trading volumes during December, given the lack of 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term and market drivers. Markets were seemingly in hibernation given that the Western world was also observing holidays, though the volume decline at FXNeo was somewhat more pronounced than with other platforms.
As such, GMO Click’s slight rebound in its trading activity last month across its FXNeo platform was short-lived heading into December. Its latest reading easily constitutes its lowest figure in nearly three years, since August 2014.
The latest figure at FXNeo came in at just ¥51.0 trillion ($451.9 billion) in December 2017, cratering by a factor of 31.2 percent on a month-over-month basis from ¥75.2 trillion ($666.3 billion) in November 2017. Apart from the seasonal lull, the main culprit for the lack of volumes growth in December was also attributed to the muted movement of the USD/JPY, which was even more static than in other previous months.
On a yearly basis, December 2017’s volumes easily lagged behind its 2016 counterpart, falling by a margin of 53.5 percent year-over-year from ¥109.7 trillion ($971.9 billion). On the whole, GMO Click’s FXNeo platform has notably underperformed in 2017 relative to the year prior, with volatility being one primary factor. Isolated pockets of trading activity were a prevalent trend over the past twelve months, though volumes have consistently been unable to meet their 2016 counterparts.
This figure also pales in comparison to December 2016, which managed to see a 753,168 contracts traded, or -45.3 percent year-over-year. The results of Click 365 and FXNeo underpin the subdued trading year GMO Click has had in 2017. It will look to get back on track heading into January 2018.
GMO Click has released its latest disclosure of monthly trading volumes for the month ending December 2017. Of particular note was that the FXNeo platform’s volumes plunged to a new yearly low, underscoring the weakest reading in a month at the venue since 2014.
Discover credible partners and premium clients at China’s leading finance event!
[gptAdvertisement]
Volumes were largely lower across most other brokerages in the industry, with Japan being no exception. Most venues saw a consolidation of FX trading volumes during December, given the lack of 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term and market drivers. Markets were seemingly in hibernation given that the Western world was also observing holidays, though the volume decline at FXNeo was somewhat more pronounced than with other platforms.
As such, GMO Click’s slight rebound in its trading activity last month across its FXNeo platform was short-lived heading into December. Its latest reading easily constitutes its lowest figure in nearly three years, since August 2014.
The latest figure at FXNeo came in at just ¥51.0 trillion ($451.9 billion) in December 2017, cratering by a factor of 31.2 percent on a month-over-month basis from ¥75.2 trillion ($666.3 billion) in November 2017. Apart from the seasonal lull, the main culprit for the lack of volumes growth in December was also attributed to the muted movement of the USD/JPY, which was even more static than in other previous months.
On a yearly basis, December 2017’s volumes easily lagged behind its 2016 counterpart, falling by a margin of 53.5 percent year-over-year from ¥109.7 trillion ($971.9 billion). On the whole, GMO Click’s FXNeo platform has notably underperformed in 2017 relative to the year prior, with volatility being one primary factor. Isolated pockets of trading activity were a prevalent trend over the past twelve months, though volumes have consistently been unable to meet their 2016 counterparts.
This figure also pales in comparison to December 2016, which managed to see a 753,168 contracts traded, or -45.3 percent year-over-year. The results of Click 365 and FXNeo underpin the subdued trading year GMO Click has had in 2017. It will look to get back on track heading into January 2018.