Japanese Brokers Report $3.85 Trillion OTC Trading Volumes in April

Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term trading volumes across Japan have declined by slightly more than 7 percent in April. The subdued 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 in the Japanese yen crosses has contributed the most to the decline, as the USD/JPY traded in a tight range and the EUR/JPY volatility declined when compared to March.

The figure reported by the Financial Futures Association of Japan (FFAJ) in April totaled ¥462 trillion ($3.85 trillion). The number remains impressive by global standards as retail investors in the country continue to look to diversify their savings away from the Japanese yen and away from years of ultra-low deposit interest rates in Japanese banks.

The number remains impressive by global standards as retail investors in the country continue to look where to diversify their savings

The trading activity in April has been broadly in line with the rest of the world as Japanese traders have become increasingly interested in trading other major currency pairs such as the EUR/USD. Activity in that pair has spiked higher by 6.5% in April.

Another big contributor to the rise in trading activity has been the British pound cross. GBP/JPY trading increased by 4% in the run up to the U.K. elections. As volatility in that pair continued after the polls, we can expect a further increase in May.

One of the favorite carry trade currencies for Japanese investors, the Australian dollar, has also marked the month with increased trading activity. The AUD/JPY activity increased 12% last month after commodities recovered somewhat and Chinese demand appeared to be stabilizing.

Looking ahead, the decline in trading activity in April is likely to be temporary. Brokers in Japan might experience a back-to-back monthly decline due to the dormant Japanese yen volatility. However, there is scope for trade to recover in subsequent months as speculation about increasing the Bank of Japan quantitative and qualitative easing effort materializes.