Saxo Bank’s FX Volumes Rise 10% in October 2019

FX trading through Danish multi-asset brokerage Saxo Bank rose to $141.2 billion in October 2019 compared to the previous month, as political events globally maintained investors’ interest in foreign exchange markets.

Saxo Bank’s clients traded worth $6.1 billion daily in October, up nine percent month-over-month compared with $5.6 billion in September 2019. Saxo’s FX ADV for last month was, however, sharply lower year-over-year, correlating to a drop of 25 percent relative to $8.2 billion in October 2018.

Saxo Bank’s total monthly FX volume in October 2019 was reported at $141 billion, up 19 percent from $118.6 billion in the month prior. However, this figure also corresponds to a significant yearly drop when compared to $188.6 billion in September 2019.

Furthermore, the increased 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 has not given Saxo extraordinary volumes in all products, with commodities and fixed income lower month-over-month, but equity bested its September equivalent.

A busy year for Saxo

Overall, Saxo Bank’s average daily volume across all asset classes was mildly higher during October 2019, reported at $10.8 billion per day, up two percent month-over-month relative to $10.6 billion the month prior. It was also lower by 21 percent from $13.8 billion a year ago.

We reported on the Danish broker last month when the Danish Supreme Court, one of the country’s two ‎‎high courts, had decided in favor of the Saxo Bank in the latest lawsuit stemming from the SNB’s Black Swan Black Swan A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in Read this Term.‎

In ‎January 2015, the Swiss National Bank’s surprise decision to remove the ‎Swiss franc’s euro peg has left brokers and their clients on treacherous ‎ground.‎ Saxo was already left with a capital hole after losing as much as $107 ‎‎million when the Swiss National Bank abandoned its exchange-rate cap on ‎‎the franc.‎

Saxo Bank has been expanding its portfolio in 2019, most recently it has completed the acquisition of Dutch lender BinckBank and now owns nearly 98 percent in the online broker. Saxo said that their similar geographic footprint, products, and customer bases meant the merger made sense and would also many efficiencies.