Trading Volumes in Japan Continue Lower after a Buoyant Start to 2015

Japanese 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 brokers have reported that trading volumes for the month of May have declined another notch by about 8 percent to mark a second consecutive monthly decline. The total amount traded through online foreign exchange brokers in the country amounted to ¥424 trillion ($3.43 trillion).

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While the figure is impressive by all accounts, the margins on the Japanese market are much thinner when compared to the rest of the world. This is largely due to the competitive structure of the local retail FX market and tight regulations. Average spreads on the Japanese market are much tighter than that of a typical Western retail FX broker.

Despite rallying to new highs, trading volumes in the Japanese yen's major cross to the U.S. dollar have been the main reason for the decline. Monthly activity in the USD/JPY declined by 14 percent.

At the same time the British pound cross picked up steam after the surprise from the U.K. elections in the beginning of May triggered substantial 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 GBP/JPY pair. Trading in this particular product jumped by almost 23 percent.

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