According to recent findings, trading activity in binary options in Japan has been dwindling. Ideally, the trading volumes are 31% lower than the case was a year ago. However, the demand for the same has been showing signs of improvement since then. The latest set of data as released and published by the Financial Futures Association of Japan (FFAJ) shows that binary options trading still remains to be quite slugging every other month and this decline has been occurring on an annual. These latest revelations are not pleasing to the ears of those who love to invest in these binary options or any other related forms of investment.
There is no doubt that the month of August 2015 witnessed binary options trading volumes total 48.73 trillion Japanese Yen. This figure represents a fractional decline from the 48.76 trillion that was registered in the month of July. If factored with regards to an annual basis, this figure represents a 31.2% drop in trading volumes as compared to the same time of the year last year.
Decrease in number of active accounts
So, what might be causing the drop in the number of binary options that are being traded currently? Could things get even worse this month? Well, the sluggish volumes might be attributed to decreases in the number of active accounts. The account numbers fell by 228 to 14, 414 in August 2015. This figure represents a decline of 8.5% compared to the same time last year.
The binary options industry in Japan for sure appears to be stagnating this year. Again, interest in the product has been falling significantly every other year and many investors are even choosing to opt out since they are not gaining and profitability from it. This has occurred mainly due to increased risk based on the fact that volatility in the market has blossomed all through this year.
On the other hand, the existing status quo in Japan might also be leading a decline of the markets for binary options. Today, the average size of a deposit for binary options is much lower in Japan than in many other countries around the world. Notably, many traders are less willing to place binary bets and as a result they have been opting out. If this trend continues this way, it will greatly affect the whole aspect of binary options in Japan and render them out of place.
Compared to the month of January 2015, the number of active traders of binary options in Japan has greatly declined to thus far. Moreover, it is good to note that in January, the figures had picked to reach above 15,200. Later on after two months, the figure was almost 1000 accounts fewer. This shows an industry that is much declining. From the look of things, it appears as if there is correlation between the increase in volatility of binary options and the decreased trade activity in the same binary options in Japan. These are of course details that are still under monitoring in order to effectively know what is ailing this industry.
Binary options in Japan are at a low for the whole of this year and the decline has been ongoing since January as stated before. With that being the case, it is prudent to take note of what could be ailing this once blossoming industry. As much as trading in binary options represents a major risk, there are investors in Japan who love it. If only the industry can get back on track, the trading volumes will most definitely get back to the right numbers. Moreover, even if the overall trading volumes come in the form of trillion Yen, it pays to get the larger picture so as to understand truly what binary options in Japan are like and why trading volumes have been on the downward trend.