Retail trading surged in June as major US brokers reported dramatic volume increases heading into quarter-end, though cryptocurrency conspicuously lagged behind the broader rally. Robinhood’s preliminary data through June 25 showed event contract volume up 136% versus analyst expectations and 60% above May levels, while options volume exceeded forecasts by 110%. Equity notional volume hit $343 billion, surpassing May’s full-month total. Crypto volume, however, rose only 38% month-over-month to $14 billion, missing analyst estimates by 51%.
The options boom extended industry-wide, with Cboe Global Markets recording a monthly record of 23.0 million contracts in average daily volume. Interactive Brokers saw Daily Average Revenue Trades jump 53% year-over-year, while client margin loan balances climbed 67% to $108.5 billion, signaling rising leverage. Institutional fixed income remained weak, with MarketAxess reporting volumes down 11% year-over-year, confirming the rally’s retail-driven nature.
FXnCO Insight
The surge in margin balances alongside record options activity suggests elevated risk appetite among retail traders, creating potential volatility catalysts as leverage unwinds if sentiment shifts.
Source: Finance Magnates