Plus500 has started 2020 with a bang, with the online trading platform announcing this Friday in a trading update that it has experienced a period of heightened market activity.
In particular, the contracts for difference (CFD) trading provider has seen heightened volumes of trading across the global markets, which has led to a significant uptick in customer trading activity.
Because of this, the London-listed company explained that its financial performance in the first quarter of 2020 to date is trending substantially ahead of the final quarter of last year.
In the trading update published through the London Stock Exchange’s (LSE) news service, Plus500 said: “It is too early to say what impact this outperformance in the current quarter will have on the outcome for 2020 given heightened levels of volatility in the market may not persist, whilst the impact of Australian regulatory changes previously referred to is yet to be quantified.”
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In the trading update, the company has not given specific details as to the uptick in trading, so it is not clear how much trading has increased and what exact period the trading provider experienced the heightened activity.
However, Reuters has pointed out that the boosted trading is a result of Coronavirus, as fears of a pandemic have seen the CBOE Volatility Index, widely considered to be Wall Street’s fear gauge, climbing to a two-year high in the last session.
As Finance Magnates reported, Plus500 managed to close out 2019 on a strong footing, after a weak first half of the year. For H2 of 2019, revenues increased by 40 percent to reach $206.5 million, up from $148.0 million in H1 of 2019.
Net profit in the second half of 2019 increased dramatically, climbing from $51.6 million in the first half of the year to $100.1 million in H2, representing an increase of 94 percent.