Retail Foreign Exchange Margin Trading in Japan: An Analysis from the Developments in 2022

Naoki Matsuda, Juri Oyama, Rie Yamaoka and Hidemi Bessho
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Naoki Matsuda: Bank of Japan
Juri Oyama: Bank of Japan
Rie Yamaoka: Bank of Japan
Hidemi Bessho: Bank of Japan

No 23-E-7, Bank of Japan Review Series from Bank of Japan

Abstract: Foreign exchange (FX) margin trading by Japanese retail investors hit a record high in 2022, unprecedentedly exceeding 10 quadrillion yen. While outlining the mechanism of retail FX margin trading, this paper summarizes factors behind the recent surge in retail FX margin trading and changes in investment patterns of Japanese retail investors. In addition, an analysis is conducted on how retail FX margin trading impacts the global and Japan's FX markets. Continued monitoring of investment patterns of retail FX margin traders is integral to better understanding the developments in FX markets.

Keywords: Foreign; Exchange; Margin; Trading (search for similar items in EconPapers)
JEL-codes: F31 G12 G15 (search for similar items in EconPapers)
Date: 2023-09-13
New Economics Papers: this item is included in nep-ifn and nep-mon
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