Saxo Bank reports a 15.4% monthly declines in forex trading volume, impacting overall financial performance in February.
Saxo Bank reports a 15.4% monthly declines in forex trading volume, impacting overall financial performance in February.
In February, Saxo Bank experienced a significant downturn as forex trading volume declines, reflecting shifts in market dynamics. The monthly forex volume on the Saxo Bank platform plummeted to $92.4 billion, marking a significant 15.4 percent decrease from the previous month’s figure of $106.7 billion. This decline led the overall monthly forex volume to dip below the $100 billion mark for the first time in two years, surpassing only the $95.7 billion recorded in December 2021.
The daily average of forex trading on Saxo Bank during February also experienced a downturn, registering $4.4 billion compared to January’s $4.9 billion. On a year-over-year basis, the latest monthly volume and daily average witnessed declines of 16.6 percent and 20 percent, respectively.
The impact of the drop in forex volumes extended to the overall total monthly volume, which decreased to $358.3 billion from $375.5 billion, marking a 4.5 percent reduction. Notably, the daily average for both months remained relatively stable at $17.1 billion.
While the forex market faced a significant decline, other asset classes on Saxo Bank’s platform showed varying trends. Equity, the leading asset class in terms of trading volume, saw a marginal decrease in monthly volume to $217.4 billion from $219.7 billion. However, the daily average for equities increased, reaching $10.4 billion compared to $10 billion in the previous month.
Similar trends were observed in commodities, with the monthly volume dropping to $39 billion from $39.3 billion, while the daily average increased to $1.9 billion from $1.8 billion. In the fixed-income instruments category, the monthly volume decreased to $9.5 billion from $9.8 billion, accompanied by a rise in the daily average to $0.5 billion from $0.4 billion.
Despite the fluctuations in trading volumes, Saxo Bank’s overall revenue for 2023 grew, reaching DKK 4.48 billion compared to DKK 4.45 billion in the previous year. However, the net profit experienced a decline of 8.1 percent, settling at DKK 711 million. These figures highlight the dynamic nature of financial markets and the challenges faced by institutions in navigating fluctuations across various asset classes.
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