GMO Click’s Volumes Stagnate in November, Continue to Underperform in 2017

GMO Click has reported its latest tranche of monthly trading volumes for the month ending November 2017. The figures reflect a slight improvement relative to last month, though largely signal a more subdued period for trading volumes in Japan, on par with other domestic brokerages.

FX 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 was in short supply for much of the month, as it did not materially affect trading volumes in Japan. This was seen across other brokerages in the country, with both Monex and Kabu also seeing flattened FX volumes during November 2017.

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Indeed, GMO Click posted a slight rebound in its trading activity on the company’s FXNeo platform in November 2017. Since bottoming out at a multi-year low of ¥66.2 trillion ($588 billion) back in July, FXNeo has seen oscillating volumes, contingent on pockets of volatility in Japan.

The latest reading came in at ¥75.2 trillion ($668 billion) in November 2017, rising by a factor of 2.9 percent on a month-over-month basis from ¥73.1 trillion ($650 billion) in October 2017. Another culprit for the lack of volumes growth in November has been the muted activity of the USD/JPY, which has yet to break out of a narrow trading range for much of the month.

Lagging behind 2016

Relative to 2016, GMO Click’s retail trading volumes did incur a decline of 43.0 percent when measured against ¥132.5 trillion ($1.17 trillion) in November 2016. The decline can be attributed to the influx of volatility associated with the 2016 elections in the United States, which saw the surprise electoral victory of Donald Trump send shockwaves through FX markets.

On the whole, GMO Click’s FXNeo platform has notably underperformed in 2017 relative to the year prior, with volatility being the primary reason. Isolated pockets of trading activity continue to define the year, though volumes have lagged behind on a yearly basis in almost every month in 2017.

However, GMO Click’s Click 365 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 traded product did register a monthly increase in the total volume of contracts traded. The figure stood at 464,386 contracts, which is the highest figure since January 2017. The reading was also higher by 16.4 percent on a monthly basis in November 2017 from just 399,093 contracts back in October 2017.