Cboe Sees Cyclical Dip as December 2021 FX Volume Dropped 12.2%

Cboe FX Markets has released the key trading metrics of the spot forex trading for December, showing an expected pullback for the month.

According to the official numbers, the total volume on the platform came in at $681 billion, which is a month-over-month decline of 12.2 percent. The platform reported $776 billion in volume for November 2021.

Additionally, the average daily volume (ADV) in December declined to $29.6 billion from the previous month’s amount of $35.2 billion. Although, December had 23 trading days compared to 22 days in November.

But, the monthly slide was expected as it was a cyclical dip in demand induced by the holiday season.

However, the forex trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term demand on the platform also dropped year-over-year. In December 2020, the platform recorded $719.1 billion in trading volume, showing that the metrics had dropped by more than 5 percent.

Quarter Remained Strong

In contrast, the overall quarterly demand strengthened significantly between October and December, when compared to the previous two quarters of the year. The total volume for Q4 came in at more than $2.17 trillion, which was mostly driven by the surge in October and November. Further, the spot trading platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term reported $2.1 trillion and $2 trillion in volume for Q3 and Q2, respectively, whereas Q1 brought in over $2.3 trillion.

The quarterly volume again saw a marginal yearly dip as it dropped from $2.18 trillion recorded in Q4 of 2020.

Meanwhile, Cboe, which is one of the top derivatives trading venues in the United States, is expanding its presence in neighboring Canada. It has finalized a deal to acquire the Toronto-based stock exchange, NEO, which is expected to be closed in the first half of this year.