Kabu Reveals Declining Trading Volumes in April

Kabu, a subsidiary of Mitsubishi UFJ (MUFJ), has reported preliminary results for its trading volumes and metrics for April 2018. The results show that the firm is continuing to experience a decline in trading volumes, a trend that started in earnest at the beginning of 2018.

The Japanese firm saw a ¥6.7 billion ($60.8 million) decline in over-the-counter FX (OTC) trading volume this month, from ¥29.3 billion ($266.78 million) in March to 22.54 billion yen ($205.23 million) in April. This was despite the increase in the number of OTC FX trading accounts on the site that took place last month.

Futures trading volumes Kabu’s also sunk to a 6-month low in April. While March saw the brokerage firm facilitate 45.2 billion yen ($411.59 million) in futures transactions, this number was only 29.79 billion yen ($271.24 million) in April.

Low 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 Japan

Despite the decline in trading volumes, Kabu saw an uptick in users this April. The firm now has 1,089,416 user accounts, up from 1,087,327 in March. Monthly deposits on the company’s also increased by 730 million yen ($6.65 million) to 24.09 billion yen ($219.41 million).

Kabu's clients shouldn't panic, however, as the company's trading volumes have dipped up and down in the past year, reflecting the changes in volatility in the Japanese market. For instance, the firm saw an OTC FX trading volume of 21.54 billion yen ($196.17 million) in December but this increased to 34.45 billion yen ($313.71 million) just two months later.

Kabu’s declining trading volumes are not unique in Japan. The Tokyo Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term has also seen thin trading volumes in recent months as the country continues to struggle through a long period of low volatility.