FXCM reports slowing growth in stock basket trading
Retail FX and CFD broker FXCM Group has released the volume increases for the month of August in its proprietary stock basket product line, indicating slowing growth in stock basket trading following several consecutive months of rapid volume growth.
FXCM’s stock basket products combine the shares of multiple companies from one sector into a single tradeable instrument. This allows customers to speculate on sectors as a whole instead of having to select a single company.
FXCM currently offers 6 baskets to its retail clients: Big US Tech (“FAANG”), Esports & Gaming (“ESPORTS”), Biotech, Cannabis, China Tech (“CHN.TECH”) and China E-commerce (“CHN.ECOMM”). The list of companies and weightings is available on FXCM’s stock basket website.
The company reported that it saw record monthly trading volume on the product line in August 2020, but that was up just 4.62% from July 2020.
While total volume was relatively consistent to the month before, the popularity of the baskets changed as traders reacted to the August actions taken by the US administration against Chinese companies. This resulted in CHN.ECOMM volume eclipsing FAANG as the most traded basket in August. Both baskets have seen growth of well above 50% YTD.
|Month||Monthly Stock Basket Volume Change|
YTD and monthly price change for FXCM’s stock baskets have been as follows:
|Sector||Symbol||YTD Price Change||Monthly Price Change|
|Big US Tech||FAANG||+59.25%||28.40%|
|Esports & Gaming||ESPORTS||+70.39%||12.55%|