FX trading algorithms are in demand
The demand for the latest versions of forex trading algorithms is growing during the time of high market volatility. Major investment banks have reported a rapid growth of the number of clients that use “algos” for trading.
Consensus is that the machines are not recommended for the time of high market turbulence. Nevertheless, the growing number of traders are turning to algos. BNP Paribas head of automated forex services Asif Razaq has stated, that the company’s overall daily average algo volumes have grown 150%-200%. He also admits, that this dynamic has not been expected.
Executives polled by Reuters believe, that the rise of the machines might have been caused by lockdowns, which are making remote work of fund managers more difficult.
Global FX trading volumes are on the rise as well. In March they have gone up 18%. Since the extraordinary volatility on the market persists, the algos have ample opportunities to learn on new data and surpass their usual limitations. Latest algorithms can also divide orders and send them to different platforms, which allows for optimal prices.
The FX algo volumes of Goldman Sachs have gone up 50% over the average daily figures last month. JP Morgan, Societe Generale, Deutsche Bank have reported unusual surges as well.