binary options

Japanese Binary Option Volumes Hit Record Lows

JFX Pulls Out Of The Japanese Regulated OTC Market For Binary Options As The FFAJ Reports A Record Low In Terms Of Volume Traded

On the 14th June the FFAJ published their latest report on Japanese binary option volumes.

Japanese binary option volumes raced to new lows in May. Customers have shunned the ‘churn ’em-and-burn ’em’ mentality that blights the binary options sector in general.

Total Trading Volume in May was ¥30.41 trillion, less than half of what it was in January. Then volume was ¥62.06 trillion and May was the worst performance since the FFAJ started providing reports in December 2013.

Japanese binary option volumes

Fig.1 – Total Trading Volume & Total Active Accounts

 

Fig.1 also shows that Active Accounts has fallen to the second lowest number on record at 11,880, just 288 accounts above the lowest ever level recorded in March 2014.

Volume Breakdown by Currency

Fig.2. illustrates that the collapse in volumes has not been focussed on a particular pair but is across the board. The EUR/JPY, GBP/JPY and EUR/USD all fell to record low volumes. The USD/JPY, the by far largest traded pair, fell ¥2.27 Trillion to ¥15.02 Trillion, a fall in excess of 15.3%.

Japanese binary option volumes

Fig.2 – Total Volumes Broken Down by Currency

The worry about Japanese binary option volumes is that generally one pair will provide a higher volume than norm owing to maybe a pick-up in that pair’s volatility. This will offset the shortfall in volumes in the less volatile pairs. It is now not happening as all the currencies are putting in poor volumes although the FX market has been fairly lively.

With Brexit on pretty much all trader’s radars at present, one may have expected a pick-up in GBP/JPY volume. But that has not been the case. If the June figures show total volume below the ¥30 trillion mark then this market is in big trouble.

Trading Accounts

May saw active accounts fall to 11,880 from a January number of 13,703, a decline of 13.3%. Active accounts were their highest in September 2014 at 16,315 (11,880: -27.2%). It would appear that the Japanese are less than enamoured with their new toy which has seemingly lost its novelty value.

Japanese binary option volumes

Fig.3 – Total Active Accounts & Volume Per Account

JFX and Binary Options Breakdown by Broker

Our reviews of the individual performances of the brokers have championed JFX as at least giving the client some chance of winning. The following illustration shows JFX consistently having the highest number of winning customers.

Japanese binary option volumes

Fig.4 – The Percentage of Winning Customers By Broker

Prior to pulling out JFX had an average of 41.6% winning customers, or 58.4% losing customers. Unfortunately (for JFX) in May the winning customers shot up to 62.5% but the 41.6% winning customers average included that spike. Yet a winning customer base of 41.6% was not considered low enough……..

……and there you have it! The remaining seven brokers have a winning customer base on average since January 2014 of just 25% and that explains the decline in accounts and the decline in volumes.

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