GMO Click’s July FX Volume Dips as COVID-19 Volatility Vanishes

Both over-the-counter and on-exchange volumes are following a similar trend.

GMO Click, a Japanese forex broker, has published its monthly trading volume, showing a correction in the demand for foreign exchange among traders.

In July 2020, the FX Neo platform recorded a total exchange volume of 105 trillion yen in foreign currencies, compared to 124 trillion yen in total volume in the previous month – a decline of over 15.3 percent month-over-month.

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The platform hit its peak in March when all trading activities all surged significantly, and it recorded 189 trillion yen in volumes. Since then, however, the volumes dropped sharply with a monthly surge of 36 percent in June.

Despite the sharp drop in July’s volume, the figure is still bullish when compared with the reported figure from the same month a year earlier. In July 2019, the total over-the-counter (OTC) forex margin trading volume on the platform was only 52 trillion yen, thus, it surged almost 102 percent in a year.

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Meanwhile, the number of accounts on the platform regularly maintained an increase, and last month it added 3,455 new traders.

A Similar Trend for On-Exchange Trades

For the on-exchange trading volume, the broker has witnessed a sharp decrease of 32 percent month-over-month in July. 

The trend almost followed the over-the-counter market, however, the uptick in June remained marginal.

If compared with the peak volume in March, the volume dropped by over 72 percent. Notably, the exchange’s peak in March was due to the surge in demand due to the increased market volatility.

In fact, last March’s forex trading volume on GMO Click was the highest on the platform since mid-2014.

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