April FX Volumes Fall At GMO Click After Massive March Highs

GMO Click, the Japanese retail broker, had recorded incredible highs in trading volume for March this year due to the volatility COVID-19 caused. This April, however, the broker had recorded a drop in volumes as volatility eases and markets try to return to regular business.

Succeeding To A Lesser Degree

GMO Click had experienced an incredible amount of volumes in March. The total volumes for over the counter (OTC) foreign exchange margin trading was recorded at almost $1.84 trillion. This stands as the best monthly results the broker has seen for nearly six years, recording the last occurrence of numbers like that back in mid-2014

It should be noted, however, that the trading volumes are still impressive. The only issue is that these numbers were not the highs that March was, coming nowhere near the COVID-19 induced volumes. For the month of April, GMO Click had reported that the total trading volumes for its OTC FX margin trading stand at $1.09 trillion. When you crunch the numbers, it shows a 40.5% loss when viewed month-over-month.

Year-On-Year Increase

Even so, April stands as the second-best in monthly trading volumes for GMO Click’s 2020 year and stands as the second strongest monthly volumes that the broker had recorded since January of 2017

The real beauty of April’s numbers is appreciated when you view it year-on-year. While it dropped significantly compared to March of 2020, when one compares it to April of 2019, you find a 123.8% increase, with April 2019 recording $488.7 billion in volumes.

Similar Behaviour In Other Sectors

When one focuses on on-exchange trading, the same thing as OTC volumes can be said: April’s volumes fell dramatically from March’s volumes but is still impressive on its own. March’s on-exchange trading volumes stood at $8.5 billion, with April’s numbers being at $3.1 billion. This marks a 63.5% drop when viewed month-on-month.

The similarities between on-exchange and OTC FX volumes follow the same trend when viewed year-on-year, as well. April of 2020’s volumes managed to achieve a 29.2% increase in volumes when viewed year-on-year with April of 2019, with 2019’s numbers reaching $2.4 billion.

Many companies across the spectrum have reported drops in their volumes in April. It should not be seen as a loss, but more an unexpected boon losing its intensity as the world slowly adapts to a COVID-19 infected world.

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