Cboe FX Volume Rebounds Strongly in November

Cboe FX Markets, the foreign exchange venue for institutions, has posted the trading volumes for the month of November 2020, showing a solid jump in demand.

The spot monthly volume of the FX exchange hit more than $789 billion last month. That was a month-on-month gain of almost 16 percent. That was a solid rebound in the institutional 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 demand since the dip in the market after the windfall gain in March.

Only the volumes of February and March in 2020 were higher than the numbers posted for November. The volumes on the exchange in March crossed $1 trillion due to the 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 market induced by the impact of the pandemic, a trend seen across the trading industry.

The solid recent figures came in after a massive slide in the institutional forex demand in October. Despite the rebound in the number following the seasonal August lull, the forex demands slipped that month.

Further, the average daily volume of the exchange venue surged to around $37.6 billion with a total of 21 trading days in the month. This figure was a little above $30.9 billion in the previous month.

On a year-on-year basis, the November volumes jumped even higher. Last year, Cboe reported a total volume of $598.3 billion in November, meaning it gained around 31.9 percent in a year.

Will the Rise in Demand Continue?

Cboe is one of the top derivatives market operators in the United States and has various other exchanges under its wing. The demand for other products of the exchange was hampered by the impact of the pandemic and US elections.

The derivatives giant is now aiming for Europe and has already drafted a plan to enter the market in the first half of next year. Meanwhile, Cboe is expanding its portfolio with the acquisition of BIDS Trading, a broker-dealer and the operator of the United States’ largest independent block-trading ATS.