PrimeXM, which is a leading forex technology provider, reported a monthly decline of the total traded volume in December, but the figure strengthened significantly on a yearly basis. In absolute terms, the platform handled a total volume of more than $1.05 trillion last month.
That figure is 14.65 percent lower than the previous month when the platform recorded $1.23 trillion in total volume. However, the yearly demand gained significantly as the latest monthly volume jumped by more than 21 percent from the same month of the prior year.
The average trading volume for December 2021 came in at $45.65 billion, which is down from the prior month’s volume of $55.92 billion but is up from the previous year’s figures of $39.38 billion.
The Cycle of the Market
Though there was a decline in monthly demand, it was a cyclical trait of the industry. In contrast, the yearly surge signifies how trading demand has received a massive boost.
Despite the double-digit decline of the total volume, the number of executed trades in the month only dropped by 2.32 percent to 31.1 million. Additionally, this number strengthened from the previous year’s numbers of 25.17 million executed trades.
The UK-LD4 server of the company remained the busiest, handling $851.92 billion in total trades in the month and executing 21 million orders. The US-NY4 location handled $115.07 billion worth of trades, while Japan and Singapore executed $81.32 billion and $1.75 billion in monthly volumes.
Furthermore, the official statistics revealed that the XAUUSD instrument was the most traded instrument, while the USDEUR pair remained forex traders’ favorite instrument.
“XAUUSD remained on the top spot of the traded instruments during December with $272.5 billion in notional value, approximately 24% of the overall monthly volume. Major FX pair EURUSD remained in the 2nd place with $136.4 billion and the US30 index has occupied the 3 places for the 2nd month with $128.2 billion,” PrimeXM stated.
