Cboe FX Volumes Slipped 3% in October

Cboe FX Markets, a foreign exchange (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) provider to the institutions, has published its monthly trading volume numbers for October. The demand for the platform’s services declined on both month-on-month and year-on-year basis.

The forex platform saw a total volume of $680.7 billion in October compared to $702 billion in the previous month. That was a monthly decline of 3 percent.

The average trading volume (ADV) for the month slipped to $30.9 billion from September’s $31.9 billion. Both the months had 22 trading sessions.

On a year-on-year basis, the trading volumes for October slipped 6.5 percent from $728.3 billion.

Cboe’s FX venue is part of the Cboe Global Markets and offers both spot and swap execution facilities for institutions.

Market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, 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. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, 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. Traders Read this Term is Again Expected in November

Similar to any other exchange, Cboe volumes peaked in March due to the increased volatility in the global markets by the Coronavirus-induced stalling of economic activities. That month, the exchange recorded a total trading volume of $1.2 trillion, but the numbers took a nosedive in the following month, with only $643.6 billion.

The reported numbers for last month were only slightly above the volumes in three months, April, May, and August. When the first two months were due to the wearing off of the sudden market volatility, August followed the market trend of slowing down due to the impact of summer holidays on the market.

Cboe is additionally focusing on the expansion of its dominance in the markets. Last month, it signed a definitive agreement for the acquisition of BIDS Trading, a broker-dealer and the operator of the United States’ largest independent block-trading ATS. The deal is expected to be closed in early 2021 as regulatory approvals are pending.