TD Ameritrade (Nasdaq:AMTD), one of the largest brokers for retail clients in the United States, has reported its monthly metrics and turnover for November 2016, having scored a strong MoM growth given an influx 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 that defined markets throughout the month, per a TD Ameritrade report.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong.
After a largely muted month in October, volumes were given a welcome boost by the US election and unexpected victory of Donald Trump, which stimulated global markets. For the month ending November 2016, TD Ameritrade underwent an average of 540,000 client trades per day, which constitutes a growth of 23.8% MoM from 438,000 trades per day in October 2016.
The latest volumes performance is also on par with other institutional venues in the US, all of which saw strong growth in trading volumes during November 2016.
Over a yearly timetable, November 2016’s average daily volumes are higher by a factor of 23.8% YoY from 438,000 trades per day in November 2015. Furthermore, TD Ameritrade disclosed its total client assets as of November 30, 2016 at $782.2 billion, having inched higher by 2.4% MoM from $764.2 billion since October 31, 2016. This figure was much larger when measured against its 2015 counterpart, justifying a 10.8% YoY increase from $706.1 billion in the same period ending November 30, 2015.
Looking at its other figures, TD Ameritrade’s average spread-based balance managed to secure a climb MoM to $118.3 billion in November 2016, moving higher from $115.2 billion in October 2016, or 2.7% MoM. YoY the latest figures also grew by 16.0% from $102.0 billion in November 2015. Finally, the group’s average fee-based balances stood at $169.1 billion in November 2016, virtually unchanged MoM from $169.2 billion in October 2016.
TD Ameritrade (Nasdaq:AMTD), one of the largest brokers for retail clients in the United States, has reported its monthly metrics and turnover for November 2016, having scored a strong MoM growth given an influx 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 that defined markets throughout the month, per a TD Ameritrade report.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong.
After a largely muted month in October, volumes were given a welcome boost by the US election and unexpected victory of Donald Trump, which stimulated global markets. For the month ending November 2016, TD Ameritrade underwent an average of 540,000 client trades per day, which constitutes a growth of 23.8% MoM from 438,000 trades per day in October 2016.
The latest volumes performance is also on par with other institutional venues in the US, all of which saw strong growth in trading volumes during November 2016.
Over a yearly timetable, November 2016’s average daily volumes are higher by a factor of 23.8% YoY from 438,000 trades per day in November 2015. Furthermore, TD Ameritrade disclosed its total client assets as of November 30, 2016 at $782.2 billion, having inched higher by 2.4% MoM from $764.2 billion since October 31, 2016. This figure was much larger when measured against its 2015 counterpart, justifying a 10.8% YoY increase from $706.1 billion in the same period ending November 30, 2015.
Looking at its other figures, TD Ameritrade’s average spread-based balance managed to secure a climb MoM to $118.3 billion in November 2016, moving higher from $115.2 billion in October 2016, or 2.7% MoM. YoY the latest figures also grew by 16.0% from $102.0 billion in November 2015. Finally, the group’s average fee-based balances stood at $169.1 billion in November 2016, virtually unchanged MoM from $169.2 billion in October 2016.
