While the forex brokers were gearing for high market volatility in the week of UK’s EU referendum, the binary options brokers are already feeling the effects of the uncertainty of the vote outcome.
Data provided by the 24option binaries broker to the Finance Magnates website shows that in May the trading volumes of EUR/GBP pair declined by 16% – from $8.17 million in April to $6.89 million in May. This represents a break in the upward trend that saw a continuous rise of the trading volumes, totaling 50%.
Kristina Boudylina from 24option told the Finance Magnates that this drop was mostly due to the market volatility, caused by Brexit speculation. It has driven traders away from the EUR/GBP pair as they chose the less risky option of trading on the GBP/USD pair, which has remained more stable in the weeks leading up to the EU referendum.
At the same time, the trading volumes of the GBP/USD pair have been more or less consistent, with a negligible drop of 0.12% from April to May. Overall, since the beginning of the year, trading in GBP/USD has risen from $8.17 million in January to $17.15 million in April.
Similarly to the forex brokers who are expecting high volatility today, so do the binaries brokers. Boudylina advised traders to take into account the technical indicators and take advantage of any potential patterns in the movement of the British pound.