Forex Trading Reaches $5 Trillion Thanks to Greece
Basics & Industry, Forex Industry

Forex Trading Reaches $5 Trillion Thanks to Greece

CLS has released transaction figures for March 2012, showing yet another record in trading: 5.07 trillion dollars exchanged hands during this busy month, up from $4.68 trillion in February and $4.24 in January.

The peak of the recent round in the Greek crisis was the main reason for this surge. The drama around the grand PSI program and the danger of a full blow bankruptcy raised tensions around the world.

Foreign exchange provides an easy access to trade in both directions of any currency pair: short or long. This isn’t that common with stocks. Currency trading tends to rise when fear is in the air and when stocks (which see more widespread trading) are on the fall.

Adil Siddiqui, at Forex Magnates, reports about this announcement and provides more details about market participants.

The debt crisis is far from over and is now engulfing Spain, that sees its yields rising while struggling to stimulate its economy and cut the deficit at the same time. It certainly needs a weaker euro.

Greece managed to stave off a default, but only for now. It is required to pass more austerity measures, and also needs to implement previous decisions, a task it found very difficult, to say the least.

So, in comparison to March, April will likely be slower in terms of trading volume. Also the long Easter weekend will likely take its toll. Nevertheless, volumes will likely remain high and continue remaining high for a few more months to come.

Further reading:  5 Most Predictable Currency Pairs – Q2 2012

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.