February FX Demand on Saxo Bank Sees Marginal Gain

Saxo Bank, a Danish multi-asset brokerage, published its monthly trading metrics for February 2021, reporting a solid uptick overall but a marginal gain in foreign exchange demand.

According to the broker’s numbers, the total volume of Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term trading last month stood at $119.8 billion, increasing only 1.3 percent from January’s $118.2 billion. The average daily volume (ADV) in the month increased marginally to $6 billion from the previous month’s $5.9 billion.

Even the slight gain in the ADV shows a recovery in 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 from the numbers achieved in the final quarter of last year.

However, on a yearly basis, the demand remained significantly lower as in February 2020 Saxo reported $7.2 billion in monthly ADV with a total trading volume of $143.9 billion.

Gain across All Asset-Classes

Apart from forex, the demand for all other asset classes remained impressive at Saxo. Equities ADV jumped to $6.9 billion from January’s $6.2 billion, with a total trading volume of $137.6 billion, which is a month-on-month increase of 11.2 percent.

The demand for commodities trading gained the most, with a total trading volume for the month at $37 billion, which is a spike of 13.1 percent. ADV for the asset-class showed a solid monthly gain with $1.9 billion that remained the same as a year ago.

Overall, Saxo Bank’s average daily volume across all asset classes was higher during February, reported at $15.1 billion per day, which is a 7 percent gain from the month prior. However, this figure was lower than the previous year’s figure of $15.7 billion.

Last week, the Saxo Bank Group reported its 2020 profits that jumped to DKK 750 million from merely DKK 40 million net income in the previous year. Furthermore, the client assets on the platform surpassed DKK 500 billion.