E*TRADE Financial Corporation (NASDAQ: ETFC) has just released its monthly metrics report for May 2017. Despite isolated pockets of  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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term throughout 2017, last month featured several market drivers that collectively bolstered trading volumes and Daily Average Revenue Trades (DARTs).

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Indeed, May 2017 was not short of market moving events, with North American markets experiencing one of the more active periods all year. In the US, the financial markets digested a string of political scandals and self-inflicted drama brought by the Trump administration. Consequently, stock markets that had previously recoiled to monthly lows managed to bounce upwards by months’ end en route to establishing fresh all-time highs.

E*TRADE’s May 2017 volumes followed a well-established trend, at least in terms of US venues and exchanges during the month. The majority of brokerages all saw volumes pointed higher as markets shook off a tranquil April. Also helping the case was an increase of trading days in the month of May - 22 compared to just 19 in April - which further added to growing volumes.

Looking at its latest statistics in May 2017, E*TRADE’s DARTs were reported at 211,516, rising by a factor of 7.9 percent month-over-month from 196,022 in April 2017 – incidentally, a 2017 low. April proved to be one of the slowest trading months of the calendar year, also hurt by having a shortened trading schedule of only 19 days. Over a yearly interval, E*TRADE’s May 2017 DARTs were also on the uptick, as indicated by a surge of 41.5 percent year-over-year, compared to a figure of 149,475 DARTs set back in May 2016.

Increased Account Growth

Delving into this yearly trend, the US brokerage scene as a whole have been experiencing a solid 2017, helped by a general retreat in trading commissions that has steadily reeled in more clients. TD Ameritrade, Fidelity Investments, and other venues have all looked to lower the costs of trading – the results being a rise of new accounts as many newer investors have been enticed by eroding fees. This reflected a gain of 20,415 net new brokerage accounts in May 2017, easily besting a figure of 8,448 net new brokerage accounts in May 2016, or 141.6 percent gain year-over-year.

The group’s large number of new accounts has also been a recurring trend in 2017. Even on a monthly basis, E*TRADE recorded a strong month in this segment, securing a total of 67,099 total gross new accounts (aggregating brokerage, stock plan, and banking accounts) – this registered a gain of 7.5 percent month-over-month from 62,432 accounts in April 2017.

E*TRADE’s customer margin balances trended higher in May 2017, as indicated by a reading of $7.7 billion, up 2.6 percent month-over-month from $7.5 billion in April 2017. A more pronounced gain was seen relative to 2016, with the latest figures signaling an advance of 18.4 percent year-over-year from $6.5 billion in May 2016. Finally, E*TRADE’s customer security holdings  Yield  Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as an internal rate of return, which may also be used to indicate the owner's total return, or portion of income, etc.Understanding Yields in FinanceAt any point in time, all financial instruments compete with each other in a given marketplace. Analyzing yields is simply one metric and reflects a singular part of the total return of holding a security. For example, a higher yield allows the owner to recoup his investment sooner, and thus mitigates risk. Conversely, a high yield may have resulted from a falling market value for the security as a result of higher risk. Yield levels are also dictated by expectations of inflation. Indeed, fears of higher levels of inflation in the future suggest that investors would ask for high yield or a lower price versus the coupon today.The maturity of the instrument is also one of the elements that determines risk. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Overall, long dated instruments typically have a higher yield than short dated instruments.The yield of a debt instrument is typically linked to the credit worthiness and default probability of the issuer. Consequently, the more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk. A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as an internal rate of return, which may also be used to indicate the owner's total return, or portion of income, etc.Understanding Yields in FinanceAt any point in time, all financial instruments compete with each other in a given marketplace. Analyzing yields is simply one metric and reflects a singular part of the total return of holding a security. For example, a higher yield allows the owner to recoup his investment sooner, and thus mitigates risk. Conversely, a high yield may have resulted from a falling market value for the security as a result of higher risk. Yield levels are also dictated by expectations of inflation. Indeed, fears of higher levels of inflation in the future suggest that investors would ask for high yield or a lower price versus the coupon today.The maturity of the instrument is also one of the elements that determines risk. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Overall, long dated instruments typically have a higher yield than short dated instruments.The yield of a debt instrument is typically linked to the credit worthiness and default probability of the issuer. Consequently, the more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk. Read this Term a figure of $253.4 million during May 2017, up 2.1 percent month-over-month against $248.3 million set in April 2017.

Looking ahead to the month of June, financial markets in the US have already had a plethora of events to help steer their trajectory. A decision from the US Federal Reserve looms as the marquee event of the month, though markets have also already endured a pullback in the technology sector across US stocks, as well as a testimony from James Comey that could yet spark a reaction from President Trump, whose administration is already embattled in multiple probes.