Saxo Bank Sees 14.4% Dip in October FX Demand

The Saxo Bank Group has published its monthly trading activities data for October, showing declining demands across all the markets for which it is offering services.

The total trading volume for the month went down to $254.2 billion, a monthly decline of 16.3 percent from the previous month’s $303.8 billion. The daily average volume for the month went down from $13.8 billion to $11.6 billion.

The FX volumes for last month came in at $114.3 billion, compared to September’s $133.6 billion. That was a month-on-month decline of 14.4 percent. The demand remained poor on a year-on-year basis as in October last year since FX trading volumes stood at $141.2 billion.

The demand for equities on Saxo further slumped significantly in October with only $104.5 billion in assets changing hands, declining 15.7 percent month-on-month. The trading volume with commodities and fixed income instruments also decreased by 23.7 percent and 17.5 percent, respectively. In absolute numbers, October's volume for commodities came it at $30.8 billion and fixed income at $4.7 billion.

Roller Coaster Ride of the Markets

The demand in trading slumped in October following a recovery in the previous month. In September, Saxo Bank reported a total trading volume of $303.8, up from August’s $279.4 billion. It is to be noted that the trading market cycle saw a decline in August due to the summer holidays.

Saxo’s volumes for October is only behind the brokerage’s reported volumes in January this year. It saw a windfall gain in March due to the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term induced Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or 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. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or 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. Trad Read this Term, but could not hold the surged numbers.

As Finance Magnates reported earlier, the Danish brokerage reported a record performance in the first half of 2020 with a net profit of $84.39 million.