GMO Click FX Volumes Fall from March Highs in April

After recording incredibly strong trading volumes for the month of March, Japanese retail broker GMO Click has posted a drop in volumes in the month of April, as COVID-19 volatility eases.

As Finance Magnates reported, March was a record month for the broker, with the total over the counter (OTC) 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 (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) margin trading volume coming in at almost $1.84 trillion.

According to the data provided by GMO Click to Finance Magnates, the trading volume recorded in March of 2020 was the best monthly result seen by the broker since at least mid-2014.

Although the trading volumes achieved in April are still healthy, they are nowhere near the record volumes of the previous month. Specifically, GMO Click reported a total trading volume for OTC FX margin trading of $1.09 trillion. Therefore, volumes have fallen by 40.5 percent on a monthly comparison.

Nonetheless, April’s trading volume is still the second-best monthly trading volume posted this year, and it is the second strongest monthly volume recorded by GMO Click since January of 2017.

It is also worth mentioning that last month’s trading volume, although lower than March, is significantly stronger year-on-year, having increased by 123.8 percent from the $488.7 billion posted in April of 2019.

GMO Click sees YoY uptick in on-exchange volumes

Taking a look at on-exchange trading, as was the same with OTC volumes, April has noted a significant fall in volumes, dropping from $8.5 billion down to $3.1 billion, which represents a fall of 63.5 percent.

On a yearly comparison, however, April of 2020 has yet again achieved an uptick in volumes, with April of last year posting an on-exchange trading volume of $2.4 billion; therefore, volumes have increased by 29.2 percent.

GMO Click is not alone in posting a drop in trading volumes in April. As Finance Magnates reported, Nasdaq, Integral, and Euronext FX all posted a monthly decline in volumes last month, down from March.